it is none of the above. a 199A loss on a PTP goes nowhere unless you dispose of your partnership interest
them it is used as a component in computing the QBI deduction. PTP income is not QBI just a component for the computation. if the PTP 199A loss is allowed, it is first used to offset any 199A REIT dividends. if there is an excess loss, that loss is carried over to 2020
example qualified reit dividend $5,000
allowed PTP loss (1,000)
net $4,000
qbi deduction $800 (20%)
same except PTP loss $6,000
no qbi deduction. ptp carryover loss $1000
it's entered in box 20 code Z. then you must use the link to detail this info in section D1 of the k-1.
right now TT has a software bug in computing the proper allowed loss for PTP's
