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mpeachey
Returning Member

Form 8995 DEFECT - TTax 2024 not accurately tracking unallowed QBI loss

I have a 1065 K-1 with a Rental real estate -  Box 2 loss of $x, call it -$1,000. Not participating, no special handling, all at-risk.

 

The K-1 has a single Box 20Z passthru entity with the same TIN as the partnership.  The passthru entity has a 2024 loss of -$1,000.

 

When I enter the Section 199A income and choose either "The income comes from the partnership that generated this K-1" or "The income comes from another business" and then enter the $1,000 loss on the next screen, the loss is not shown on the relevant Qualified Business Income Component Worksheet and the Unallowed QBI loss is not tracked on Form 8995 Line 1c (has a value of $0).

 

If I enter the passtru entity as it's own Form K-1, the unallowed QBI loss is tracked as expected.

 

 

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