Business & farm

It is not uncommon for a K-1 to report Qualified Business Income (QBI) information not only for activities of that partnership, S Corporation, or trust but also for QBI passed to that partnership from another partnership, S Corp, or trust. If your K-1 reports Section 199A information for both the “main” entity and a “pass-through” entity, you must enter your K-1 as if it were two (or more) separate K-1s. One K-1 will report only the box amounts for the main entity, and a separate K-1 is needed for each pass-through entity. If you can't figure out how to split the amounts from the information you have, you’ll need to contact the preparer of the K-1 to get those amounts.

When entering those separate K-1s for the “main” and “pass-through” entities (and after you’ve entered your specific box/code) you’ll be asked if the Section 199A information comes from the entity that sent you the K-1, from another business, or is only Section 199A (REIT) dividends. 

For the K-1 that has the “pass-through” entity box numbers, choose the from another business option. At that point, TurboTax will ask for the name and EIN of the pass-through entity.

A K-1 entry for QBI can be further complicated if:

• your K-1 has entries for any two boxes of boxes 1 through 3; or,
• if there are rental activities reported on lines 2 or 3 where at least one of the rental activities is self-rented or land and there are also additional rental activities that are NOT self-rented or land.

Even when there’s no Section 199A information, these situations require a separate K-1 in TurboTax for each type of activity. When K-1s such as these also have a Section 199A Statement with QBI information, the Section 199A Statement amounts must be split within those separate K-1s.    @sebekjohn-gmail-com

The above comes from this Help article.  The article also contains information on how to enter Qualified Business Income deduction from K-1 when:

• The business is classified as a Specified Services Trade or Business (SSTB) or you sell to an SSTB that you co-own
• Your K-1 statement reports amounts from a specified agricultural or horticultural  cooperative
• Your K-1 has a business loss 
• You are itemizing and have charitable contributions made by your K-1 business or investment interest expense from a loan used to buy your K-1 business.