Line 17 on K-1 has code V* & AC* and STMT in both boxes.

[momofjbtt]

Hi! I really need some assistance I have a question on both codes on Line 17;  code V* & AC*, and both have STMT next to them. 

Let's start with code V* - Schedule K-1, Box 17 Code V*, Shareholder's section 1199A Information has the following amounts (fictitious #'s):

Ordinary Business Income: $12,345

W-2 Wages: $123,456

Qualified property: $223,456

What do I input in turbo tax for code V*? Do I need to include all of the amounts?

Code AC* -  Schedule K-1, Box 17 Code AC*, Gross Receipts for Sections 448 (c) has the following information & amounts (fictitious #'s):

Description                                                            Amount

8990 Gross Receipts for 2021                           $111,000

8990 Gross Receipts for 2020                           $112,000

8990 Gross Receipts for 2019                           $113,000

What do I input in turbo tax for code AC*? Do I need to include all of the amounts?

Thank you in advance!

[ThomasM125]

For Code V in box 17, choose V-Section 199A information from the drop down menu and enter the income ($12,345). Later, choose the The income comes from the S corporation that generated this K-1 option if that is true. On the screen that says We need some information about your 199A income, choose the (name of corporation) has W-2 wages and enter the wages ($123,456). Below that choose the (name of corporation) has UBIA of qualified property box and enter the qualifed property ($223,456).

For the AC code, choose AC in the drop down menu for line 17 and enter the average of gross receipts for the last three years. So, add the three years receipts and divide by three.

[BrianSub]

My situation is very similar to the one above.  I have code V and AC, each referring to statements.

Code V:

        Ordinary Income (Loss)        -7405

        W-2 Wages                            61,963

        Unadjusted Basis                    2950

Code AC:

        Gross Receipts                     92314

I entered the -7405 for code V and it took me to Form 7203.  Luckily the business had included a Form 7203 with my K-1 and so I filled it out in TurboTax accordingly.  However, the TT took me to another set of questions and said that I should have a Schedule A that would allow me to answer the questions, but I don't, so I just answered them to the best of my ability.  (It never asked my for unadjusted basis) . At the end of all this TT said that I had income from this business in the amount of $0, which doesn't seem right.  I suspect it should be -$7405.  Any suggestions on where I went wrong or how to fix this?

[AliciaP1]

It asks for Statement A Qualified Business Income.  Your statement from your K-1 may be called "Statement A", "Statement - Section 199A", or "Statement - Qualified Business Income (QBI)", or something else along those lines.  That is what you will use to make the entries as lined out by @ThomasM125.

@BrianSub 

[SmartMsg]

Hi Experts & fellow community members,

I have a similar situateion with Box 17 showing V* and STMT with one exception. 

My 199A (Statement A Summary) has two two entries (one column each). Below are numbers (fictitious):

Column 1 
ABC REIT 1 LLC

Rental Income (loss) :  -38137

W2 wages: 871

UBIA of qualified property: 38988

Column 2
BABA REIT 2 LLC

Rental Income (loss) :  -10589

W2 wages: 10

UBIA of qualified property: 49,140

Can you please advice how and where do I incorporate these numbers in my tax filing? ALso this is for amendmend of previous year.

Many thanks for your help. 

Regards,

SmartMsg

[gjs854]

I have a similar K1 with box 17 and code AC listing the last 3 years gross receipts.  Do I enter the current year gross receipts, an average of the 3 years, or the total of the 3 years?

[PatriciaV]

For Schedule K-1 Box 17 Code AC, you can enter the total of the three years.

According to IRS Instructions for Form 1120S Schedule K-1 Box 17 Code AC:

"Use the gross receipts amount to figure the business interest expense you can deduct, if applicable. See section 163(j) and the Instructions for Form 8990 for details."

TurboTax does not support the automatic entry to Form 8990. You would need to enter this manually using the form from the IRS. See About Form 8990, Limitation on Business Interest Expense Under Section 163(j). To include this form, you would need to print and mail your return (no e-filing).