"we see you have section 199A income"

[ue1]

While filling in K1, and after 7203, getting the following question which I do not know how to answer: "we see you have section 199A income"?

Have 2 sources of income/loss:  K1 from an s-corp, and rental properties. All are in schedule E.

The K1 is a loss and has no 199A income.

Some of the rentals produce profit and some are a loss.

I don't understand how could the rentals be related to 199A.

[ThomasM125]

Secion 199A refers to qualified business income (QBI). Most rental income qualifies as QBI, especially if you materially participate in the activity by maintaining accounting records, collecting rents and overseeing repairs. You can learn more here:  Is rent income QBI?