How to enter section 199A information that has multiple entities?

[t4tax19]

I have a K1 with BOX 20, Code Z: The Section 199A information has 2 blocks (one for the LLC, and another passthrough entity)

RENT - EXPENSES RELATED TO RENTAL REAL ESTATE
 RENTAL INCOME (LOSS) XXX.

PASSTHROUGH - ABC LLC
 RENTAL INCOME (LOSS) - XXX
 W-2 WAGES XXX
 UNADJUSTED BASIS OF ASSETS XXX

How do I enter this in turbotax?

[DavidS127]

You will need to enter two separate K-1 forms into TurboTax for the single K-1 you received.  Use one K-1 to report the amounts reported for the rental income generated by the partnership, and a second K-1 to report the income generated by the passthrough entity.

For both of these K-1s you need to enter, you'll see this TurboTax screen to indicate whether the income is from the partnership or from the passthrough entity.  Note that on the passthrough entity, you be asked for the name and EIN of that business.

Here are those screens where you indicate if the income if from your partnership, or from the entity that passed through income to your partnership:

For the separate K-1s you must enter for the single K-1 you received from the your partnership, enter the code Z when you enter the K-1 box 20 screen, but you don't necessarily need to enter an amount here.  Continue on, and you'll find the screen  "We need some more information about your 199A income or loss".  When you check the box next to a category on that screen, a place will open up to enter the amounts from the Statement or STMT that came with your K-1.  The applicable category (or categories) on this screen (and the following "Let's check for some uncommon adjustments" screen, if applicable) must be completed in order for your K-1 QBI information to be correctly input into TurboTax. 

To get back to the K-1 summary screen and find the Schedule K-1 to edit, click the "magnifying glass Search" icon on the top row, enter "k-1" in the search window and press return or enter, and then click on the "Jump to k-1" link to find the K-1 you need to edit.

Here are the "We need some information about your 199A income or loss" and "Let's check for some uncommon adjustments" screens where you enter the information from your K-1 Section 199A Statement/STMT:

[t4tax19]

Thanks for the info!

Couple of follow ups

1. While entering info in K1 for the passthrough do I enter all the info from the original K1 as well? (like Box 2, 19) or should I be dividing up the information based on the entity it belongs to?

2. Is "UNADJUSTED BASIS OF ASSETS" entered in "Name of the Business has UBIA of qualified property" in 199A income section

[ThomasM125]

You should not duplicate any of the entries, accept for the name, address and federal ID number on the K-1's.

[RBINSHTOK]

David,

I have a similar concern with my 199A but in my case, there are no pass throughs but I have for Box 20, Code Z, two locations for rental income (loss) with each location having it's own "unadjusted basis of assets". I am not sure how to enter both of these?  When I select "Code Z" in TT and leave it blank, it later asks me for more information about my 199A income...where I can select that my funds has "UBIA of qualified property"...but there is only one field where I can put my unadjusted basis of assets.  How do I capture both of these basis values.  Also, other than what I already put in box 2 for "net rental real estate loss", do I need to enter this loss somewhere else, as it's also shown on my statement under my 199A/CodeZ details?  Thanks for your help!

[Irene2805]

If there is just one K-1 that includes both rental properties, add the total of the two figures for "unadjusted basis of assets"

The rental loss should also be entered on the 199A details screen.  [See screenshot below.]  This entry only affects the calculation of the Qualified Business Income Deduction and does not affect the calculations in the rest of the return.

@RBINSHTOK

[JohnS276]

One of my K-1s shows a code Z for box 20, however it will only allow me to enter the Section 199A data for one of the portfolio companies (I still need to enter two others listed on this K-1).  How is this done?

Thank you