Thank you DavidS127 for the detailed explanation. I use Premiere edition with PC download (not online). So I receive three K-1s from non PTPs that report in box 1 and 2. That’s fine and I have been filing it properly using separate K-1s (for a total of 6) for each activity. But here’s where it gets exciting: there are between 4 and 6 passthrough entities for each of those partnerships that report Box 20 Code Z (Section 199A) amounts. These numbers have been provided in a separate statement attached to Form 1065 with independent EINs regarding that code Z. Each of the 4 to 6 passthrough entities reports Ordinary Income, Rental Income, W-2 Wages, Self Employment Earnings and UBIA.
So here are my questions:
1) Exactly how many K-1s do I need to file? My guess is around 60 if I read your aforementioned statement correctly...!
2) To verify, I need to adjust the primary Partnership (the one that sends me the K-1) Box 1 and Box 2 amounts by adding or subtracting the passthrough entity amounts found in the statement addendum? Or is that adjustment just for Box 20?
3) Which of the “first three boxes” of the K-1s do I attach W-2 Wages, Self Employment earnings and UBIA to? My guess is Box 2 (rental real estate income) for UBIA but not sure about the W-2 or Self Employment.
4) Is there different software that can file Box 20 Code Z more expediently? We’re talking hours upon hours of data entry (with wrong inputs likely) for a whopping total QBI deduction of around $65. Is the IRS looking at a way to streamline this QBI Section 199, or just using it as a trap to force an audit?
5) When the partnership ends, I am finally distributed my capital amount, and I receive the Final K-1, how much work am I looking at to reconcile all of these Box 20 Code Z amounts from numerous passthrough entities over the years?
