Questions about filling box 1, 2 and 3 of schedule k-1 and section 199A income in turbotax

[hqat1]

Hi,

I know similar questions have been asked many times, but I couldn't find the exact answers in the forum.

I have box 1, 2 and 3 in schedule k-1. I understand I need to enter 3 schedule K-1 in TT, each one with entry from 1 box. Only one of the 3 schedule k-1's in TT will have boxes 4-20, all the others will have box 4-20 unmarked. Question 1, which one of the 3 K-1’s should have box 4-20?

Question 2: (image below) Assume I enter boxes 4-20 in K-1 related to box 1. when I get to box 20 code Z, in the screen that says "we need some information about your 199A income" the first checkbox says " has business income (loss) (including ordinary, rental, royalty or other)". There are 4 fields, do I enter both ordinary business income(loss) and rental income(loss) or do I enter just one of them and the 2nd one in another schedule k-1 related to box 2? This is section 199A income, I am not sure if section 199A income is separate from Box 1 and box 2 numbers, if they are separate I guess my question is irrelevant?

Question 3. (image below) In the same 199A income entry form, is “UBIA of qualified property” field entered from schedule K-1 “Partner's Section 199A Information Worksheet” “Qualified property” Field?  (btw the 2023 form is intentional)

[DianeW777]

Here are the answers to your questions.

Question 1, which one of the 3 K-1’s should have box 4-20? 

• Enter it in a K1with rental income. It's not necessary to try to allocate in each K1. You do want to have the same income in either K1 that uses the Code Z, Box 20 Section 199A so that you don't lose a deduction.  Example: rental income 750, Box 20, Code Z- 750 maximum for this K1. If there is a higher amount add it to the second K1.

Question 2: Assume I enter boxes 4-20 in K-1 related to box 1. when I get to box 20 code Z, in the screen that says "we need some information about your 199A income" the first checkbox says " has business income (loss) (including ordinary, rental, royalty or other)". There are 4 fields, do I enter both ordinary business income(loss) and rental income(loss) or do I enter just one of them and the 2nd one in another schedule k-1 related to box 2? This is section 199A income, I am not sure if section 199A income is separate from Box 1 and box 2 numbers, if they are separate I guess my question is irrelevant?

• In the K1 entry with rental income enter the rental income
• In the Ks entry with other income enter the other income for that box

[hqat1]

Thank You Diane, that really helps.

How about the 3rd question about UBIA?

[DianeW777]

I apologize for missing that one.

Question 3.In the same 199A income entry form, is “UBIA of qualified property” field entered from schedule K-1 “Partner's Section 199A Information Worksheet” “Qualified property” Field?  (btw the 2023 form is intentional)

• UBIA means unadjusted basis of qualified property immediately after acquisition. Basically it is the cost of assets before any depreciation. The amount should be on your statement that came with your K1.

@hqat1 

[hqat1]

Thanks for the explanation. I don't see any unadjusted basis in the statement. Since this is not the first year for this partnership, is it possible that I don't need to enter this information? I only have an adjusted statement (attached), is this the correct statement? or should I try to find it from the first years schedule K-1 for this partnership?

[PatriciaV]

Yes. Use the Qualified Property line from the Partner's Section 199A Information Worksheet to report UBIA for the 199A questions in TurboTax. If the line is blank for the current year, enter nothing.

[leisureladd]

I have entered the UBIA amount for the previous years from the qualified property in the partner's section 199A worksheet. Why can I not enter it for 2024?

[PatriciaV]

Please clarify if you are unable to enter the amount or if you are unable to find where to enter the amount.

@leisureladd 

[leisureladd]

I have the amount in Statement A which has the UBIA $ amount of qualified property. TT states need more information as the LLC has rental income.  then I check off.  "LLC has UBIA of qualified property". It then drops down "UBIA of Qualified Property" with no where to enter the amount.  Never had this before.   

[leisureladd]

I found where to enter UBIA. It was way towards the right margin.  Quite inconspicuous.  Any way to hightlight the entry areas?