We have a rental property LLC with S-corp qualification. We did 1120s with K-1 loss of $10k. Now doing personal taxes, can't get loss to apply to our income or get QBID.

[mdsddsms]

May have clicked some boxes wrong in questions about K-1, form 7203 and about section199 income. Any advice?

[JamesG1 · Accepted solution]

For Section 199A income, V-Section 199A information should be reported in box 17 of the K-1.

For Section 199A income, have you made an entry at the screen We need some information about your 199A income.

IRS form 7203 will likely reflect the loss in Part I of the form.  Is there stock basis in line 1 to offset the $10,000 K-1 loss?  Have you clicked Refresh Calculations in the lower right hand corner of the 7203?

Please clarify.

[mdsddsms]

Thanks for your advice. It reflects pretty much what I have tried already. I put 0 in the 119A income amount, since I had an overall negative number (-$10,664) as the bottom-line income. That seemed to make the final review "happy" and that "question to fix" went away. I have not filed yet and will not do so until I'm closer to finishing our personal taxes. So, I guess we don't get QBID, since we didn't have any income? Should I just hope the loss carries over to next year's business income? I had hoped we could use it against this year's personal income, but I guess not. I will check 7203 if I can find where I saw it in questionnaire or review process, but I think I refreshed calculations. End of year stock basis was $564,000, value of property after depreciation and minus small startup loan from shareholders, wife and me. Beginning of year basis was zero since this was first year of business and not all units rented. Thanks again, will await any further advice. -MDS

[AmeliesUncle]

As a side note, having real estate in a corporation is often a bad idea.  Are you SURE you want to do that?

A QBI loss is also a negative thing.  If you had a $10k QBI loss this year and next year you have a $5k QBI profit, you still won't get a deduction because the $5k is being cancelled out by the previous $10k loss.