JamesG1
Expert Alumni

Business & farm

Schedule K-1 (1065) entry should be available February 21.

 

Hopefully, the preparer of the K-1 has provided an attachment outlining the breakdown of incomes, expenses and attributes that are listed on the K-1.  The original K-1 and the attachment provided by the preparer of the K-1 may look like this.

 

Original K-1                                                         Box 1 only                                                           Box 2 only

 

Box 1     $1,000                   =                             $1,000

Box 2     $500                      =                                                                                                            $500

Box 5     $100                      =                             $75                                                                         $25

Box 6a   $200                      =                             $150                                                                       $50

Box 6b   $100                      =                             $75                                                                         $25

W-2 wages $50,000            =                             $25,000                                                                 $25,000

UBIA $100,000                    =                             $50,000                                                                 $50,000

 

The partnership should provide section 199A information to compute the qualifying business income deduction for the entity as well as the individual box 1 and box 2 incomes.

 

At the screen Choose Type of Activity, click the hyperlink Learn more. The note may say:  

 

If your K-1 shows more than one type of activity, treat each one separately. Enter all business items on one K-1, all real estate rental items on another K-1, and all other rental items on a third K-1.

 

So there will be one K-1 entry for box 1 income.  Only click on box 1 and the statement "This K-1...".

 

There will be a second K-1 entry for box 2 income.  Only click on box 2 and the statement "This K-1...".

 

The other boxes of the K-1 may refer to either box 1 income, box 2 income or a combination.  The preparer of the K-1 may have included attachments or detail which explain how those items break down.  

 

The preparer of the K-1 may have included qualified business income deduction information in box 20 that refers to box 1, box 2 or both boxes of income.

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