Schedule K-1 Boxes 1 and 10 and Code Z

[Anonymous]

Hi,

I purchased units in an MLP in 2020 and received my first Schedule K-1 today. As shown in the attached screenshots, the K-1 shows an "ordinary business income (loss)" in box 1 and "net 10 section 1231 gain (loss)" in box 10. It also has an attached statement that shows a code Z1 amount for "Section 199A PTP Income". I entered the box 1 and box 10 amounts into the appropriate boxes in TT, as shown in the attached screenshots. However, TT also asks me for more information about the 199A, where it seemingly gives me the opportunity to enter the same information for boxes 1 and 10 again. Is there something I am missing? Am I supposed to enter the same information I had entered for boxes 1 and 10 again as part of the 199A question?

Thanks!

[Irene2805]

That's correct - TurboTax is asking those questions only for the purposes of calculating the Qualified Business Income (QBI) deduction.  Those figures are not added again in your income calculation.

[Anonymous]

Thanks, @Irene2805 ! One follow-up question - how do I calculate the "Total ordinary Form 4749 gain (loss) included above" shown on the "We need some more information about your 199A income" page? Clicking on the "Learn more" hyperlink next to "Total ordinary Form 4749 gain (loss) included above," it states: "These ordinary gains/losses would be found in Box 11 with a code I on a partnership Schedule K-1 (Form 1065)..." However, it also states, "These gains/losses are not usually separately stated on Schedule K-1..." These two statements seem contradictory. If Box 11 on Form 1065 of the Schedule K-1 is empty (as is the case for me), can I also leave "Total ordinary Form 4749 gain (loss) included above" empty, or is there more to it than that?

[Irene2805]

You are correct -- If  Box 11 on the K-1 is empty, you can also leave the "Total ordinary Form 4749 gain (loss) included above" box empty.