K-1 box 20 z

[DaveF1006]

Actually to answer your question, here is the precise method to report the three K1's. Don't deviate from this instruction.

1. Without looking at this, I think the issue is in Box 20 with a code Z, that reports three different businesses. If so:
2. You will report the K1 you received as it is listed on the K1, including all of the entries that should go into the boxes, and then report Box 20 code Z without an amount. 
3. Now as you answer the questions, there will be a screen entitled we see you have 199A income. Here is where you will will select the box that says This income comes from another business. After you make this entry and press continue, the next screen will ask you information about this business. This information is listed is listed in your supplementary statement.
4. After you finish the first K1, you will prepare the second K1 listing the partnership that issued this K1 to you.
5. Here you will leave all boxes blank except for Box 20 code Z. Here you will repeat the same step in listed in Step 3.
6. For the third K1, repeat steps 4&5.  

[Bigbak78]

What amount needs to be entered where it just has the lettersSTMT

[ThomasM125 · Accepted solution]

@Bigbak78 the STMT you see on your K-1 form means that there is a statement attached to it that includes the numbers that you are to enter in TurboTax for box 20. Code Z indicates that this is for your qualified business income (QBI) entry. You should see an amount for that on your statement, often it is the same amount as the income reported on your K-1 schedule box 1 to 3.

[JK797]

what if your income is a loss, can you still enter from your code z w-2 wages and ubia?

[anza]

For the k1s I've received they have information for Box 20-Z in the statement.  There are amounts for rental loss and w-2 wages.  In half there is an amount for unadjusted basis of assets  and the other half for UBIA.  Is UBIA and unadjusted basis of assets the same thing?

Do I just add these three figures together and put them in Box 20Z. 

Do I also put these amounts in separately in Section D1- qualified business income deduction?  I'm not sure how I handle this.  

Also half my K1s the Box 20-Z section 199A income I believe is coming from another business because there's a EIN listed.  Is that the best way to tell?  

Thanks for all the help

[CaptainAl22]

Thanks for such a simple solution.

All I did was open the Schedule K-1 form, scroll down to Section D1 (entitled "Qualified Business Income Deduction - Statement A Information"), and fill in the first table there. Just above the table is a line saying, "Shareholder's share of QBI or qualified PTP items subject to shareholder specific determinations". In my case, I simply needed to supply a number for "Ordinary business income (loss)" in the first line of the table.

[CaptainAl22]

This is definitely the simplest way.

After entering a number in Section D1 I went back to Box 20 and re-entered code Z and the same number without a problem.

Turbotax should fix this Code Z in box 20 with this solution.

[ho35]

TaxJesus' solution worked for me (no increase in refund though).

All I did was open the Schedule K-1 form, scroll down to Section D1 (entitled "Qualified Business Income Deduction - Statement A Information"), and fill in the first table there. Just above the table is a line saying, "Shareholder's share of QBI or qualified PTP items subject to shareholder specific determinations". In my case, I simply needed to supply a number for "Ordinary business income (loss)" in the first line of the table, which I took as the value of Box 1 in Part 3 earlier in the Schedule. Re-ran TurboTax check, and it passed! My refund went up a bit too. 

[jeff114c]

when doing f-3 prossesing on TT, it adds US amount to total causing error at check out time. 

[markmartian]

@ho35, @TaxJesus, @captainAI22

"TaxJesus' solution worked for me (no increase in refund though)...."

Yes, it will get you past the error check, but it won't give you the correct calculation for QBI deduction. 

DavidS127's approach is the correct one, but it's cumbersome and un-intuitive.  I wish TT would automate the QBI calculation from a single K-1 form. 

[markmartian]

I wish an expert would answer @cookers33 questions earlier in this thread ("So here are my questions:..."). 

I'm in the same situation with limited partnership investments (PTEs, not PTPs) with box 1 and box 2 income and many box 20 Z pass-through EINs contributing to the QBI.  Do I literally have to generate a new K-1 entry for each of the 20+ pass-through EINs, in addition to the "main" box 1 entry and the 2nd box 2 entry?  With 10 investments, that's hundreds of K-1 form entries.

How does Ttax use all those entries?  Isn't it just in case you exceed the income threshold ($157500) for the QBI deduction, and therefore have to do the more complex w-2, UBIA, SSTB and basis calculations? For lower income filers, can't the separate EIN entries be ignored and just use the combined totals of each of the "Ordinary Income, Rental Income, W-2 Wages, Self Employment Earnings and UBIA" categories?  Thanks!

@DavidS127

[cookers33]

TurboTax - please program your Premier Edition or create a new edition that can handle the different categories (business, real estate) and the multiple pass-throughs!  I am willing to spend extra as it will save me dozens of hours in preparation.  Otherwise, 2022 taxes will most likely be sent to a CPA or prepared with software that can handle said items.

Please!

[Mike9241]

@markmartian 

@cookers33 

if you are saying your LP investments are not PTPs and they invest only in non-PTP passthrough entities then your work can be simplified. Turbotax (this is strictly a TT issue. professional tax software I have used does not have this limitation) k-1 input only allows an entry either on lines 1,2 or 3, so if your k-1 that has income/loss on more than one of these lines you must use a k-1 input for each. certain items like dividends or interest can be entered on any of the k-1s but other info and amounts that relate to lines 1,2 or 3  must be entered on their respective K-1s

PTPs are a different story. under the tax laws, each PTP must (maybe) stand on its own for tax reporting. if you invest in a partnership that invests in 50 PTPs, then 50 k-1s in Turbotax MAY BE required. what the code, REGS, and IRS have never clarified is what if a PTP has invested (but less than 100%) in another PTP. in this case must each PTP be reported separately. 

this is from a PTP information sheet that owns parts of other PTPs 

The passive activity loss limitations provide that individuals and some other types of investors that do not meet certain business participation thresholds may only deduct losses from these activities to the extent of the taxpayer's income from such activities. One of the unique tax issues related to investments in PTPs provides that the passive activity loss limitations are generally applied separately with respect to each PTP that is owned by the taxpayer. However, the application of the passive loss limitations to tiered PTPs is not entirely clear, so you should consult your personal tax advisor as to whether you are subject to the passive loss limitations, and if so, how the information presented below should be reported on your federal and state income tax returns.

[vgadams]

I beg your pardon if this has been asked before.   My K-1 comes from only one partnership.

My K-1 has a number in box 2 and box 3 so I have input two K-1's that you can see on the K-1 Summary page.  Some other boxes have numbers but they are small. 

Box 20 has a Z and STMT.  On the statement for box 20, I have three separate numbers.  The first number matches the number in box 2 and the second number matches the number in box 3.  I also have a third number (that is not found anywhere else) with the description Section 199A unadjusted basis. 

My big question is do I input 2 or 3 separate K-1's?   I think that in my first K-1, I input box 2 and the other boxes from 4 up.  When I get to Enter Box 20 Info, I select Code Z and leave the amount blank.  When I get to "We need some information about your 199A income", I input the number on the STMT (that matches box 2).  Do I input the number on the STMT that matches box 3 or do I input that number on the second K-1 where I input the box 3 number and nothing else?  Does it matter which K-1 I input the UBIA number?  First K-1 is fine or do I create a third K-1 just for the UBIA number? 

[DaveF1006]

No it doesn't matter where you enter the UBIA information. You can enter in one form or the other. You do not need an additional K1 form for the UBIA.