I am trying to understand how TutboTax calculates QBI income (199A Worksheet by Activity - line 1a). I am unable to find anywhere within any of the forms where this calculation is done.
My scenario is as follows:
I sold a few parcels of vacant land (no depreciation) on installment sale in 2023 that was owned by my LLC (partnership) for less than a year (short term gains).
As a result, I have the following income types.
1. Installment income
2. Interest income
3. Late fees
4. Payment processing fees
As per the IRS definition of what to include in QBI income (IRS QBI Income), all of the above should be included as QBI income with the exception (possibly) of the capital gains (Installment income).
However, the K1s that TurboTax produces, shows huge differences between the Ordinary Income (Box 1) and the QBI Income (Box 20/Z Statement A).
In one K1, Box , for example, has $61,495 while the QBI Income (Box 20/Z Statement A) for that K1 has $33,966.
Please clarify for me how TurboTax computes Box 20/Z Statement A.
Thanks
