Basic K1 questions

[ppt]

I am starting to do my taxes but before that i would like to understand basic K1 concept. This is little new to me

(All the numbers below are FAKE). Lets say my investment in commercial REIT is $250.00 Having that in mind few questions.

1. Schedule K1, Line 20AH has a line item "Qualified Nonrecourse" with value $350.00 (higher then my investment value). I am confused. What does it represent? Where am i supposed to use this in turbo tax?
2. in 199A worksheet W-2 wages are $20.00. Is this something I will report in federal tax form? Where else am i supposed to use this in turbo tax?
3. It has a line item called "Qualified property" with valie $450.00. Same question #1. What is this and why it is higher then the investment? Where am i supposed to use this in turbo tax?
4. There is partner's basis worksheet and it shows that there is $250. investment, $350 liabilities and total with some other number comes down to $605.00. Where and how am i supposed to use this information in turbo tax?

[JamesG1]

IRS Partners Instructions for Schedule K-1 (form 1065) states:

Qualified nonrecourse financing generally includes financing for which no one is personally liable for repayment that is borrowed for use in an activity of holding real property and that is loaned or guaranteed by a federal, state, or local government or borrowed from a "qualified" person.

Enter K-1 line 20AH at the screen Enter Box 20 info.  Click the drop box and select AH - Other information.

199-A worksheet W-2 wages are reported at the screen We need some information about your 1099-A income.  Click the box next to W-2 wages and enter the value.  This figure is routinely used in the calculation for the Qualified Business Income Deduction. 

Qualified property likely refers to Unadjusted Basis Immediately after Acquisition. This figure is routinely used in the calculation for the Qualified Business Income Deduction.  In most cases, UBIA is the original purchase price of the asset which is always higher than the adjusted balance of asset which is generally original cost less depreciation.

199-A worksheet qualified property are reported at the screen We need some information about your 1099-A income.  Click the box next to UBIA of qualified property and enter the value.

The partner's basis worksheet sounds like a separate worksheet and not the information listed in Part II section J, K and L.  The information listed in Part II section J, K and L are reported when you enter the K-1 into the TurboTax software.

The partner's basis worksheet sounds like an analysis of your investment in the partnership.  This would not be reported in TurboTax but would used to justify your cost basis in the investment upon sale of the investment.

See also this TurboTax Help.