Section 199A is blank in Statement A even though sch K1 box 20 has code Z

Forum|Forum|2 years ago
September 30, 2023
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I received sch K1 from a syndication. Sch k1 has business income, real estate income, gain, and distributions reported. Sch K1 also has box 20 with code Z but STMT does not have 199A dividends reported.

What does this mean? Turbotax is throwing an error that I have code Z entered but no 199a dividends reported. How do I get around this?

Best answer by Mike9241

if the activities qualify for 199A, the partnership MUST provide this info on the k-1 because the IRS can check what you enter vs what's on the k-1. so you need a corrected K-1 if there is 199A info which sems likely. did you look on the back of the k-1?.

not sure what you mean by 199A dividends. Only certain REIT dividends qualify for 199A. they would be included on 9a and possibly 9b and the amount would be 1 of the 20Z items - separately reported.

business 199A info must be reported separately form real estate 199A info because Turbotax requires each activity - line 1 and line 2 along with the relayed 199A info to ne entered on separate k-1s.

gains are never 199A income and distributions reduce your tax basis and are neither income nor expense so also are not 199A items

Anonymous_

Level 15

Perhaps contact the issuer?

@Mike9241

Mike9241

Answer

Level 15

not sure what you mean by 199A dividends. Only certain REIT dividends qualify for 199A. they would be included on 9a and possibly 9b and the amount would be 1 of the 20Z items - separately reported.

business 199A info must be reported separately form real estate 199A info because Turbotax requires each activity - line 1 and line 2 along with the relayed 199A info to ne entered on separate k-1s.

gains are never 199A income and distributions reduce your tax basis and are neither income nor expense so also are not 199A items