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Shay Gold
Level 1

K1/QBI deduction

I received a K1 from my work. We are a healthcare practice but with a retail glasses shop within our S corp structure. The retail portion our accountant tells us should be able to take advantage of the QBI deduction. The rest of the practice cannot because it is in the healthcare sector. The K1 statement is divided into the various segments of the practice but it is all on one K1 because it is all one practice. Is there a way to designate part of the 17V entry as a QBI deduction for the 20% pass through but a different 17V entry as a specified service business that does not qualify for the pass through. 

Thank you in advance for any guidance you can give. 

2 Replies
Mike9241
Level 15

K1/QBI deduction

the preparer should have separated the QBI info into two segments.  even operating in the healthcare industry, it's possible the net income from that segment could qualify for QBI.  for reporting purposes, two k-1's would need to be entered in the 1040,  one for each segment. QBO goes back to 2018, so if the activities started in that year maybe amended returns should be filed - both for the corp and stockholders

Shay Gold
Level 1

K1/QBI deduction

Thank you -- hoping for some clarification still.

 

There is one K1. 

For line 17, it says STMT.

On the statement, it subdivides the corporation into two parts, one retail (qualified business income), one healthcare (service business income). Each subdivision has a separate group of 17/17V/17W etc. TurboTax won't let me enter two separate 17V entries for the same K1. It also won't let me choose both Yes specified services and No specified services. I either have to choose one or the other. 

 

Is there any way to do this other than to have the accountant generate two separate K1s? Thank you!

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