TT asked me to enter the value of Code Z (section 199A information). The K-1 form I received shows 'STMT' on Code Z value. I am not sure what it means, but it came with 'Partner's Section 199A information worksheet' for Code Z. See the attache screenshot. Should I just enter $600 (Net rental real estate income) for Code Z? or $2,539 ($600 + $1,939 qualified property) for Code Z?
@manbeing Typically, the deduction is applicable at the shareholder level.
Enter the total and then enter the individual figures in the subsequent 199A screen.
What if the CPA who prepared the K-1 schedule said the corporate rental income is not eligible to get QBI deduction. Should I still enter the total figure for Code Z?
What I found is if I enter total figure on Code Z, TT automatically apply QBI deduction for me.
@manbeing Typically, the deduction is applicable at the shareholder level.
What did you end up doing? Did you simply add up the amounts, and enter that for K1 Box 20 Code Z?
Please see this answer from KathrynG:
Re: K-1 box 20 z
Revisit your partnership interview.
For Box 20 Item Z: the 2019 IRS Instructions for Form 1065 Partnerships states:
Please see screenshots below. You will be asked a series of questions that you can answer based on the Schedule K-1 you received. There should be a statement attached that will provide you with the information you need to answer the questions.
Thank you. That subsequent 199A screen did not pop up for me. How did you get there?
Yay, I found it. You have to enter a dollar amount in the first box to get it to open up a 199A detail screen a few clicks later.