K-1 Box 17 Code V* STMT Multiple Businesses

Forum|Forum|6 years ago
May 27, 2020
1 reply
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It's my first time filing a Schedule K-1 where Box 17 has a code V* with STMT entry. I left it blank in TurboTax and made it to the additional information where I had no troubles entering all of the Statement A - QBI Pass-through Entity information. However, the Statement A contains a second company with Ordinary business income. As there isn't any place which it appears I can enter this other business, is it correct that I need to create a second K-1 in TurboTax to support getting this single value entered?

If it's correct that TurboTax needs additional K-1's entered for any additional businesses on Statement A, would the process be to create the extra K-1, enter the main company information (who generated the K-1), and basically just progress to the screen asking which boxes have an amount and check box 17, enter code V, choose that the income comes from another business, and then enter the other business info and 199A income? It just seems strange to have to do this in a whole other entry. It would be nice to get some confirmation that I'm doing this right. Any help/advice would be greatly appreciated. Thanks!

TurboTax Home & Biz Windows

Best answer by DavidS127

Yes, you described correctly how to enter the second K-1 for the passthrough entity Section 199A ordinary income being reported on the K-1 from the main S Corp.

DavidS127Answer

Level 13

Yes, you described correctly how to enter the second K-1 for the passthrough entity Section 199A ordinary income being reported on the K-1 from the main S Corp.

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QPC

Level 3

I have the exact same concern. Even though I understand I need to create a new K-1, what should I fill for Box 1-16, BEFORE I can get to the step to report the second entity as a result of setting V in Box 17? For example, if the Box 1 of my main K-1 is $100, shall I put $100 in Box 1 for BOTH K-1s created? Thanks!

JamesG1

Level 15

I don't think so.

If box 1 of the main K-1 is $100, that $100 will follow through and eventually be taxable income on your tax return whether or not you qualify for a qualified business income deduction.

If you enter $100 in box 1 of the second K-1, I believe that you will overstate your taxable income. This should be easy to test out on your tax return even before you enter the qualified business income deduction information for each K-1.

Are you able to report $50-$50 or $70-$30 in box 1 of the two K-1's based upon the information reported in the Schedule A STMT?

In addition, if you were to report net income at the screen Enter Income or Loss from Box 1, then I would expect to see:

V-Section 199A information and the income amount at the screen Enter Box 17 Info, and
At the screen We need some information about your 199A income: