DavidS127
Expert Alumni

Investors & landlords

No, you can't enter both those amounts on one K-1 in 2019.  You'll need one K-1 with the amounts related to the "entity" and another for the "Pass Through - ABC 2013, LLC.  The box 1 on the "entity" K-1 will have the ($85) loss, and the box 1 on the "pass through" K-1 will have the ($9,872) loss.

 

The first year for the "Section 199A Qualified Business Income Deduction" would have been 2018, when the QBI deduction was implemented. 

 

TurboTax changed the "screens" for entry of this information in 2019 versus 2018, because in 2018 the IRS used separate codes AA, AB, AC, and AD to report the Section 199A information.  In 2019, all that information goes on a Statement/STMT instead of having separate codes for each component of Section 199A information.  See the 2018 Form 1065 K-1, page 2, box 20 codes at this link.  Compare those to the 2019 Form 1065 K-1, page 2, box 20 codes at this link.

 

 You would have to look back at the 2018 K-1 to see if it also reported two separate entities (the partnership itself and the pass-through entity) with Section 199A information. 

 

The reason for the two separate K-1s is that QBI information gets tracked year to year by entity so as to track losses that carry forward to future years to offset QBI income.

 

@gregk71

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