topic QBI on K-1 in Get your taxes done using TurboTax

QBI on K-1

User46 — Wed, 12 May 2021 15:24:54 GMT

Working on 2020 personal taxes. I have a K-1 Error - "QBI passive OP loss should not be greater than the total loss". Can't enter the correct numbers for 2018 and 2019. I may have made things worse by trying to override the default numbers. Should the QBI entry for each year be the same number as the Regular Tax field? Or should one of the entries be a total of other lines? Seems that when I override the 2019 entry, the 2018 entry automatically updates. Guess I don't understand the data flow.

Re: QBI on K-1

47acre94 — Sun, 16 May 2021 03:01:21 GMT

Hi @User46 , I am in the same position. I am dealing with K-1's from master limited parternships (MLPs)/pass-through partnerships (PTPs). In most instances, the amount I see in the QBI column is the same as the value in the "Regular Tax" column. So on page 3 of the TurboTax K-1 form, line 1a, is what I am seeing placed in the Qualified Business Income Carryovers table at the very end of that same K-1 (page 7 and 8). In my case it's showing up in Row B which is titled "QBI suspended loss - passive".

The problem I'm having, which I don't know that you're having, is when I enter a number for QBI Passive Op Loss for 2019 (for clarity, I'm writing about the entry in Row G called "operating loss", it's recalculating the amount for 2018, row D operating loss to be the difference between the 2019 Row G operating loss for "Regular Tax" and the amount I entered. I don't think this is correct. I don't know why it's not summing all the past years passive losses. Is there something in the tax code that says the QBI carryover losses can only be the last 2 years?

Re: QBI on K-1

User46 — Sun, 16 May 2021 20:19:50 GMT

47acre94, I solved my issue on my own. I'm very busy at the moment, but I'll try to respond in about in hour.

Re: QBI on K-1

User46 — Sun, 16 May 2021 21:05:59 GMT

I'm not an accountant, but I do some trouble shooting for math and programming issues. I can't say that my solution is correct from an accounting point of view, but I know it fixed my math problem and I was able get through the error check and file my return.

Working in the Forms view of my K-1, I wanted the same value to appear in both the Regular Tax and QBI columns for 2018. And also in those two fields for 2019. (Different values for each year.) My problem, like yours I think, was that entering the QBI for 2019 changed the QBI for 2018.

Above that on the same form is an entry in Section D2, Letter H, 3a "Previously disallowed losses freed up in the current year" That number was not, but needed to be equal to or greater than the total of the two QBIs for 2018 and 2019. Enter this value before entering the QBI for 2019 below.

Let me know how this works, but don't as my why. 🙂