Section 199A PTP income

[danbon1]

I sold interest in PTP in 2019 and am trying to work through step-by-step for Schedule K-1 line 20 code Z.  Program says it needs more information about my 199A income. When I check mark the line for "X" has business income(loss) another set of lines appears asking me to define it either as "ordinary business income" "rental income" or "royalty income". Explanation on the K-1 supplemental information just calls it PTP income. How do I enter this?

[DavidS127]

You should be able to correlate the Section 199A income reported on the supplemental statement with one of income boxes on the K-1:  box 1 for ordinary business income, box 2 for rental real estate income, or box 7 royalties.  

If the only income on the K-1 is for the PTP itself (i.e., there is no "pass-through" by the partnership of income from another business), then then Section 199A income for the PTP is somewhere "within" the other income being reported on the K-1.

If you can't make this correlation on your own, you will need to contact the K-1 preparer for guidance.

Note that if the partnership does have Section 199A income passed from another entity (different EIN that your partnership), you have to "split" the K-1 and enter one K-1 with the actual partnership numbers, and another K-1 for the passthrough entity numbers.