How do I find the 'QBI Passive Op Loss' from a K-1 form?

[DanP0428]

The program is not working right.  It will probably be fixed next year This year use AH.

[PatriciaV]

See the answer above from Expert Irene2805:

Information for calculating the Qualified Business Income (QBI) deduction should be included in a Statement A, attached to your K-1.  It is also include in Box 20 of a K-1 for a partnership with code Z.

If you don't have Statement A, the QBI Passive Op Loss is the figure listed on line 1 or line 2 (if real estate) of your K-1 if:

• It is a negative number; and
• The material and active participation boxes are not checked.

Otherwise, leave the answer field blank.

[Diana46]

Problem: Federal Review is asking for Schedule E QBI Passive Operating Loss and Passive Operating Loss but does not indicate which fields are missing.

Solution: Probably zero (0). 

I worked with two specialists and an expert this evening to interpret what appears to be a coding bug. In the rental property sales carryover section, Passive loss and QBI deduction ask for a by-year value to be entered. If the total loss spans multiple years, and some of the loss is from prior to 2018, one should be able to enter 0 (zero) in the 2018 & 2019 fields, however, the page will not accept the value zero.

During the Federal Review, I was redirected to check the values for the Schedule E form to fill out the Passive Operating Loss and QBI Operating Loss, yet, there are no fields with these titles and it was unclear what to complete (no fields were being highlighted by the system to indicate what is missing). When I entered a value, the next message indicated that the number could not be greater than zero. I entered a negative value (I suspected this was incorrect) and clicked Continue. I was greeted with a Success message that didn't feel accurate. So I navigated back to the original Carryover section and confirmed my suspicions; the original entry is not allowing zero, yet the form is requiring zero in the 2018 and 2019 fields. I corrected the values I had changed in the Federal Review, left 2018 and 2019 blank, returned to the Federal Review section and added zeros when prompted for the missing values.

I believe this is a bug and will cause folks to enter an incorrect value. Hopefully, mine is correct.

[fuechuen]

My K-1, 20Z--section 199A PTP income is positive, and the number is rejected, how do  I enter it for the QBI passive op loss?

[AliciaP1]

If you have positive income from a PTP for 2022, you do not have a QBI Loss.  If your PTP qualifies for QBI, and you have QBI losses carrying over from prior years, TurboTax will offset your QBI income from 2022 with the carryover loss entered when it calculates the QBI deduction.