"we see you have section 199A income" ??

[ue1]

While filling in K1, and after 7203, getting the following question which I do not know how to answer: "we see you have section 199A income"?

Have 2 sources of income/loss:  K1 from an s-corp, and rental properties. All are in schedule E.

The K1 is a loss and has no 199A income.

Some of the rentals produce profit and some are a loss.

I don't understand how could the rentals be related to 199A.

[ThomasM125]

Section 199A refers to qualified business income (QBI). Most rental income is considered QBI, especially if you materially participate in the rental activity by maintaining accounting records, collect rents and see over repairs to the property. You can use this link to learn more:  Is rent income QBI?

[djbrosky]

I am not materially involved in Scorp. on line 17 other information v* statement. I filled out 7203 form with information provided in statement. Now it won,t let me file electronically it keeps asking for more i

nformation. The information is correct. How do I get passed this to e-file.

[JamesG1]

Are you being asked about more information for:

• the line 17 other information,
• form 7203, 
• 199A income or
• something else?

Please clarify.

Section 199A income is reported by following these steps:

• At the screen Enter Box 17 Info, select V-Section 199A information.  Leave Amount empty.  Click Continue.  This tells the software that Section 199A information will need to be entered for the income previously reported.
• At the screen We see you have Section 199A income, select the appropriate income description.  Click How would I know this? for more information.  Click Continue.
• At the screen We need some information about your 199A income, select the appropriate income description and amount from the 199A detail provided with the K-1.  In some cases, you will also select and enter values for W-2 wages and UBIA of qualified property.  Click Continue.
• The information that is needed to complete the screen may be found on a Statement A attached to your K-1 information.

@djbrosky