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New Member
posted Jun 4, 2019 1:41:51 PM

QBI deduction on a K-1

The 20% QBI deduction does not process onto the K-1 from partnership 1065 Turbo Tax Business software. Please advise what may be the reason. Limits are not the issue. 

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1 Best answer
Intuit Alumni
Jun 4, 2019 1:41:52 PM

The QBI is not calculated on the 1065 return; it is calculated on the 1040.

Instead, the information needed for the calculation (such as wages, qualified property, etc.) is reported on the K-1 on Box 20  (codes "Z" through "AD").



2 Replies
Intuit Alumni
Jun 4, 2019 1:41:52 PM

The QBI is not calculated on the 1065 return; it is calculated on the 1040.

Instead, the information needed for the calculation (such as wages, qualified property, etc.) is reported on the K-1 on Box 20  (codes "Z" through "AD").



New Member
Jun 4, 2019 1:41:55 PM

Not me, but nexchap came up with an excellent answer to my similar problem a couple of days ago. His solution worked 100% for me. See it at:

https://ttlc.intuit.com/questions/4689809-how-does-turbotax-add-ptp-ordinary-gain-into-the-qbi-deduction-it-does-qbi-ded-for-reit-divs-and-in-k-1-box-20ad-but-not-for-ordinary-gains-from-non-sstb-ptp-sales

Nexchap's solution is for TT Premier and not TT Business. There may be differences between the way TT presents the K-1 Partner worksheet in Premier and the way TT presents the worksheet in Business. Plus you'll probably need the QBI Deduction worksheets that come from pub 735 chapter 12. With my simple life I had only the pain of the "simplified" worksheet in the 1040 instructions (page 36).