Form 1065 K-1 "Statement A - QBI Pass-through Entity Reporting" Data Entry

[jcav1]

How do you enter more than one trade or business listed on Statement A - QBI pass-through Enity Reporting.  I have 12 listed.

[DavidS127]

If the single Form 1065 Schedule K-1 you received reports 12 businesses on the Section 199A Statement or STMT associated with box 20 code Z, you'll need to indicate a choice on the "Is the business that generated the Section 199-A income a separate business owned by the partnership?".

On that "Is the business that generated the Section 199-A income a separate business owned by the partnership?" screen, TurboTax is asking if the Section 199-A income was passed through to the partnership sending you the K-1 by another partnership, S-Corp, or trust; versus being generated by the business operations of the partnership that sent you the K-1. Notice that when you indicate the QBI comes from another business, you'll get additional questions, including whether the pass-through entity is a PTP, and on the next screen the name and EIN of the business that passed through the income to the partnership that sent you the K-1.

You will need to do this with an additional K-1 entered into TurboTax for each of the 12 businesses that reported Section 199A amounts passed through to your partnership.

If you have both types of QBI on your K-1 (generated by the partnership that sent you the K-1 and passed through from another business to the partnership that sent you the K-1) you need to "split" that K-1 into two separate K-1s for entry into TurboTax: one K-1 for the QBI generated by the partnership that sent you the K-1, separate K-1s for the QBI passed through to that partnership by the other business. 

Similarly, if your Schedule K-1 shows both passive and nonpassive activities, or it shows more than one type of activity, (i.e. trade or business, rental real estate, or other rentals), or there are multiple rental activities and at least one of the activities is subject to the recharacterization rules (the property type is either 5 (Self-rental) or 7 (Land)), use a separate K-1 worksheet for each activity. In other words, there should not be entries on any two boxes of boxes 1 through 3 and separate K-1's must be completed for rental activities reported on lines 2 or 3 where at least one of the rental activities is self-rented or land and there are also additional rental activities that are NOT self-rented or land.

All that having been said, when you get to the Section 199-A Statement information, you can add it together within those same categories used to "split" the K-1 (generated by the partnership vs passed through to the partnership, and type of activity).

[kevhar]

I continue to have the same problem where I have code V on Line 17  and enter OBI but keep being asked for info on Statement A and cannot finish return. Followed the screens as info in this site suggested, no place to put "Additional Info" which  has following on Line 17 Additional Info.:

 Income Items   SSTB

Sect. 199A W2 wages

Sect. 199A unadjusted basis

Sect. 199A PTP income

[LauraNM813]

@Kovac1ML Did you ever figure this out? I have the exact same situation thanks to Energy Transfer. My Code Z line actually is -3, so do I need to even be worried about this at all? I can't figure it out!

[DavidS127]

Enter the code Z when you enter the K-1 box 20 screen, but you don't need to enter an amount on that screen.  Continue on, and you'll eventually find the screen  "We need some more information about your 199A income or loss".  When you check the box next to a category on that screen, a place will open up to enter the amounts from the Statement or STMT that came with your K-1.  The applicable category (or categories) on this screen (and the following "Let's check for some uncommon adjustments" screen, if applicable) must be completed in order for your K-1 QBI information to be correctly input into TurboTax. 

So, you don't need to enter the $-3 on the box 20 screen.  Instead, once you get to the "We need some more information about your 199A income or loss" screen, you "match" the amounts on the "Section 199A Statement or STMT" that came with your K-1 to the lines on that screen.

To get back to the K-1 summary screen and find the Schedule K-1 to edit, click the "magnifying glass Search" icon on the top row, enter "k-1" in the search window and press return or enter, and then click on the "Jump to k-1" link to find the K-1 you need to edit.

Here are the "We need some information about your 199A income or loss" and "Let's check for some uncommon adjustments" screens where you enter the information from your K-1 Section 199A Statement/STMT:

@LauraNM813

[LauraNM813]

@DavidS127 thank you SO much! That finally solved my problem after weeks of agony trying to fix it.

[foobarred1]

My Statement A (QBI pass-through entity reporting) has two columns:  First one is labelled 1065, Line 22, and the second one is the name of my operation. 

For example, I have an entry for both columns for "ordinary business income (loss)" and UBIA of qualified Property.

Do I add those together when I enter the Section 199A Statement information?

[Irene2805]

No - Don't add them together.  You should check with the business that issued the K-1 to see what they mean with the two columns,

It sounds as if the column 1065, Line 22 is the total for the partnership and the second column, [name of your operation], is your share.

If this is the case, use the figures from the column with the name of your operation.

As you go through the interview for the K-1:

1. After entering figures for box 20 of the K-1, you will come to a screen, We need some information about your 199A income.  [See screenshot below.]
2. Mark the appropriate boxes (business income, UBIA, etc.) and enter the numbers in the box that appears.

@foobarred1

[foobarred1]

Well, TurboTax for Business generated the K-1 for my business.  I believe the first column, where it is labelled 1065, line 22 refers to capital gains/losses from selling assets (for the same business).  I'm guessing that it is separated because these particular gains/losses are not part of the QBI deduction.  Maybe it considers those actions as passive income.  Still doesn't make complete sense because my capital gains from setting assets is a positive number (profit) whereas my K-1 shows it as a loss.

Does that make sense?  If that is the case, do I need to enter separate K-1s in TurboTax with figures in the first column on one, and another K-1 with figures in the second column?  If I need to do that, what do I enter for Box 1?

This is really confusing.

[foobarred1]

I also want to add that I had already understood the screen grab you showed in your reply.  If I only had one column in my 199A, then filling out "We need some information about your 199A income" would be easy, as you show.

Problem is that I have two columns.

[Irene2805]

Each column on your Statement A represents an activity of the partnership.  In the screenshot posted below, there are two activities--one for the general partnership and another for farming.  Is yours similar?

Did you prepare the 1065 for the partnership?  Is there more than one activity that the partnership is engaged in?  That would explain the two columns.

Regardless, add the two columns together when entering the 199A information.  Together they represent the income, etc. that is shown on the K-1 itself.

@foobarred1

[foobarred1]

Yes and Yes.  There's really only one activity our farm was engaged in, but perhaps selling of assets was considered a separate activity.

Thank you for your confirmation that I add the columns together for the 199A information.

[Adelawu]

same here. who can help us to answer this question?Thanks

[DaveF1006]

 To report your K-1 and report all the supplementary information on Statement A.

1. Go to federal>wages and income>Business Investment and Estate/Trust income>Schedule K1
2. Enter information on your form in accordance with the questions asked.  
3. After entering the information regarding your K-1.  Enter information if any in Boxes 1,2, and 3. Check the box that indicates there are amounts in more than Boxes 1,2, &3.
4. Check Box 20 and press continue. 
5. Now enter the numbers on the form, when you enter information in Box 20
6. Pick code Z from the drop down, if there is no amount to enter next to it, leave blank. Turbo Tax will determine that amount from the questions that follow. press continue
7. Continue through the sections. Be sure to mention that your investment is at risk.
8. And then continue through the interview, there will be questions asked that is on Statement A.  Whatever is entered will determine if you are qualified to take the QBI deduction.

[JabbokRiver]

I just spent hours trying to do this. I couldn't fix it in forms mode. I had to go back and go through the section in Easy Step. Then I got the additional options and the error message was finally fixed.