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

[Anonymous]

I am a unit holder for this L.P. and received a K-1 form. While entering this information in Turbotax, I received this question. However, I really do not understand what I should enter here. I have a Code Z on my K-1 form that shows a (loss) value. Any help is much appreciated. 

[Anonymous]

Adding some information: I also have a Code Z on my K-1 which has a (loss).

[ErikaG]

I'm here with the same question. 

[mike812]

I have the same question. There is no such field in my K-1 form. 

[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.

[mike812]

Thank you for explanation. 

I do not have Statement A, but there is Box 20 with code Z. It is positive in one K-1 form, and negative in another K-1 form (from another MLP).  Should I get these numbers from 20 code Z and use them as QBI Passive Op Loss in TT?

[terribleivan]

I don't have a code Z. I do have, on Line 1, "Separate PTP Ordinary Business Income," which is a positive number. I assume this means I have no QBI Passive Op Loss. According to your advice, I should therefore just skip answering the question in TurboTax. But the software won't let me do that. It insists on an answer. I propose to enter 0. Is that correct?

[ThomasM125]

Since your income is positive and you don't have a code Z on your K-1 schedule, it would be unlikely that you have QBI operating loss, so it would be appropriate to enter $0 for that entry in TurboTax.

@terribleivan

[25r624]

When putting in the QBI Passive Op Loss, Turbo Tax is wanting me to put the number on the 2019 line G Operating Loss. Do I need to go back to 2019 and find that number?

[JulieS]

Yes, if you owned this investment in 2019 and it had a loss in 2019, it is important to enter that loss to make sure your QBI deduction calculates correctly. 

[DanP0428]

Just change the code Z to code AH.  AH is a generic code and will clear up the TurboTax error and let you file.  

[25r624]

I guess I was trying to figure out why Turbo Tax didn’t already fill in the 2019 since I used Turbo Tax for the last ten years.

[DanP0428]

Don't wear out your brain trying to figure out why TurboTax does something weird.  It is because someone changed something in the program.  Use whatever work around it takes and it will possibly be fixed for next year.

[J-S1]

TurboTax 2021 asks me this question and  I have no idea to find this info 

[J-S1]

what is answer?