K-1 Box 20 e and z code

[williamgeorge1424]

My K-1 for a residential rental property shows 3 codes in box 20.  I don't understand why it is showing 2 of those codes - E and Z.  After both the E and Z code, there is no amount, just the letters "STMT".  I can't find corresponding numbers to these code and when I go to enter my K-1 info into my personal tax return, it requires some numbers to be entered.  I'm confused.

Reported like this in box 20:

E STMT

N $4,302

Z STMT

[DianeW777]

The K-1 is referring to a statement that explains the dollar amounts you have available to uses, that should have come with your K-1 to show you what would not fit on the form. You must get the information from the preparer of your partnership return.

Code E. Basis of energy property. If the partnership provides an attached statement for code E, use the information on the statement to complete the applicable energy credit on Form 3468, line 12. See Energy Credit in the Instructions for Form 3468.

Code Z. Section 199A information-Qualified Business Income Deduction (QBID). Generally, you may be allowed a deduction of up to 20% of your net qualified business income (QBI) plus 20% of your qualified REIT dividends, also known as section 199A dividends, and qualified PTP income from your partnership. The partnership will provide the information you need to figure your deduction.

• Form 1065-K1 Instructions

Both pieces of information are on the statement that is referenced in Box 20.  Once you have those you can complete the entry of your K-1 in TurboTax.

• Where do I enter a K-1?

[williamgeorge1424]

Thank you for the information.  However, I still can't find the $ amounts to enter for E and Z.  I used Turbo Tax Business and did our partnership return myself.  And I looked at the pages that printed and can't find anything that says code E or Z other than in box 20.

[DianeW777]

Review the information in the links below to confirm the partnership is eligible for the energy credit. As far as Code Z - you will understand the numbers for that once you review the information.

The qualified business income deduction (QBID) is available for any business where the partners are active and materially participating in the operations of the business activity.  The following link will help you know how to calculate that for your K1 statement. You may also need wages paid (not to partners, but other employees) and the unadjusted basis of assets immediately after acquisition (UBIA) (cost before any deprecation was used).  The link below will show you how to calculate that amount (profit or loss).

• What is QBID?

The information in the link below will let you know if you actually have an energy credit allowed through your partnership.

• 2022 Instructions for Form 3468 - IRS

[Pazzy]

I have a very similar problem. Here are my details. 

- Entity is an LLC structured as a Partnership 

- The only reason for the business is a rental real estate property

- I use TurboTax Business to file taxes and provide Schedule K-1 to each partner (been doing this for several years)

- In past years, our Schedule K-1's included Box 20 Code Z and sometimes Code N, but never Code E.

- The 2022 Schedule K-1 somehow included Box 20 Code E, but there are no supporting statements (no 3468 found in my return at all). 
- [Edit] Additionally, my Code Z is missing from my 2022 Schedule K-1's, which seems wrong since I do have Rental Income and UBIA of Qualified property in previous years. 

This seems like a bug in TurboTax Business because it makes no sense.