The Code V amounts are used to compute the Section 199A deduction. Follow these steps:
- In the K-1 entry screens, at the screen Enter Box 17 Info, select V-Section 199A information. Leave Amount empty. This tells the software that Section 199A information will need to be entered for the income previously reported. Click Continue.
- At the screen We see you have Section 199A income, select the appropriate income description. Click How would I know this? for more information.
- At the screen We need some information about your 199A income, select the appropriate income description and amount from the 199A detail provided with the K-1. You also have listed values for W-2 wages and UBIA of qualified property. Click Continue.
Instructions for Schedule K-1 Form 1120-S (page 17) explains Code AC:
Code AC
Gross receipts for section 448(c). Use the gross receipts amount to figure the business interest expense you can deduct, if applicable. See section 163(j) and the Instructions for Form 8990 for details.
This information is used if you must file IRS form 8990 Limitation on Business Interest Expense Under Section 163(J).
Enter at the screen Enter Box 17 Info under AC - Gross receipts for section 448(c).
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