199A deductions on qualifying income from K1

Forum|Forum|5 years ago
February 21, 2021
2 replies
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I am using turbotax business desktop to do partnership business taxes and turbotax self-employed for my personal taxes later on. I have two separate general partnership businesses that are pass through entities in terms of taxation and me and my business partner receive k1s for each business every year. None of these two partnerships I run are specified business under the 199A section nor the combined income I receive from both k1s reaches the taxable income thresholds for single filer. Do I qualify for the 199A deduction?

thanks

TurboTax Business Windows

MaryK4

Level 15

Yes, in general terms, QBI includes the ordinary business income (less expenses) generated by a business. QBI does not include investment type income of the business, such as interest or dividend income, or capital gains from the sale of property.

Just note, it does not include any guaranteed payment paid to a partner for services rendered with respect to the trade or business, and to some extent, any payment to a partner not acting in his capacity as a partner for services rendered with respect to the trade or business.

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Mike9241

Level 15

yes , but since the QBI deduction doesn't come from the partnership, each partnership must report its own QBI info on the K-1's so you can take the QBI deduction on your 1040.