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JCL24
Returning Member

Turbotax forcing Qualified Business Income deduction

My shedule K-1 has a statement showing Section 199A information but this is for a real estate partnership and we do not meet the 250 hours requirement  for QBI deduction.  Turbotax doesn't give me the option to declare whether the income is ineligible.  Do I have to go into the tax forms and manipulate by hand?

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3 Replies

Turbotax forcing Qualified Business Income deduction

The error started back on the partnership return ... it needs to be corrected to remove the 199A from the K-1.  

Turbotax forcing Qualified Business Income deduction

It is unclear where TT captures or derives whether a business is a Qualified Business or not. Consulting businesses are not "qualified" but the question does not seem to be asked in the interview or on a form anyplace. As a result 199A dividends are declared to be deductible when they should not be.  I can't find where to turn it off.

Turbotax forcing Qualified Business Income deduction

Easy fix ... remove the unneeded unwanted 1099-A entry ... this will remove the 8995 automatically.  Of course the question really stems from an incorrect business return producing an incorrect K-1 form.  But since the deduction is optional and not a requirement you can just remove the erroneous entry from the K-1. 

 

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