Form K-1 Line 17 Code V Stmt

[chuck-fuller]

On line 17 of my K-1, I have a line item with code V and STMT as the value. That refers to Statement A—QBI Pass-through Entity Reporting (Schedule K-1, Box 17, Code V). On that statement, there are two entities listed. One is for the pass-through entity or primary entity of the K-1. The other is for a PTP.  Both entities have values for Ordinary Business Income (Loss). My question is how to enter both entities into Turbo Tax?

I have successfully entered in the amounts for the first entity, which is the primary entity for the K-1 but am unable to enter the value for the PTP entity. How do I do that in Tubo Tox

[PatriciaV]

It appears that your Schedule K-1 reports Ordinary Income from both the S-Corp itself and a PTP. Since the business that generated the Section 199A income is a publicly traded partnership, you need to treat it as a separate activity.

1. Go back and remove the Section 199A income from Box 17 of the S-Corp K-1. If there are multiple sources of Sec 199A income, only remove what is attributable to the PTP.
2. Create another K-1 for the PTP under Partnerships/1065. Use the same basic info from the S-Corp but add "PTP" to the name.
3. Be sure to check the PTP box on the page "Describe the Partnership."
4. Enter the items of income in the appropriate boxes on the K-1, except use Box 20 Code Z for the Sec 199A income.
5. This will allow you to report the Sec 199A Ordinary Income from the S-Corp Box 17 Code V.

[chuck-fuller]

Patricia,

Those so much for the help. I was creating a second K-1 last night but not the 1065 version. This worked out. I entered the basic information for the company from my K-1, checked the PTP box, check box 20 and then went through the worksheet to add the income.

Thanks again!