K1 line 20 question

[taxmoney101]

I 

i have received a schedule K1 with line 20 as shown below. Income Item & Additional information?

How do i enter Line 20 information in my tax return ?

[PatriciaV]

After you complete the Schedule K-1 entry, including Box 20 Code ZZ (no amount), continue the next screens. At some point, TurboTax will ask about Section 199A (QBI). Check the first box "The income comes from the [entity] that generated this K-1." The next screen, "We need some information about your 199A income" will display boxes for you to enter the amounts provided to you on Statement A. 

[taxmoney101]

if I select ZZ with no amount in Box 20 , I am getting below

But if i Enter Z with the amount - 142  in Boz 20 first and then i am getting the screen

about Section 199A (QBI). Check the first box "The income comes from the [entity] that generated this K-1"

If I click next i am getting "We need some information about your 199A income"  . Do i need to enter the unadjusted  basis amount  $13,392 as renatal income loss ?

Thanks!

[taxmoney101]

any help please? where can i enter the unadjusted basis?

[DaveF1006]

It depends. Assuming you are working on your k-1, 1065 return, be sure you check Box 20 as one of the boxes that you have information to report. As you start working on your k-1 and enter all the information in the boxes you checked, when you get to Box 20, you will enter a code Z in the drop down box that appears. Do not put in an amount. Press continue when you are done.

• Then describe the partnership and check if any of the conditions described pertain to your partnership. press continue.
• Then select the choice that best describes your Section 199A income. press continue
• Then the next screen will allow you to place a check mark where it mentions you have UBIA of qualified property as well as any other entry that pertains to you. After you place a checkmark, you will be able to enter your unadjusted basis.   Here is a screenshot illustrating  how this entry will appear in your program.

[taxmoney101]

did you mean to enter it like shown below?

[taxmoney101]

[PatriciaV]

Yes, your entries on the 199A screen appear to be in the correct boxes.
@taxmoney101 

[taxmoney101]

ok, but its not generating the QBI deduction (20%) from the QBI income $13250. Am I missing something?

[DaveF1006]

It depends. It looks like there isn't any income, at least Box 2. The UBIA is not income but represents the basis of qualified property on the placed in service date. Qualified property is described as any tangible property held in connection with any identified trade or business. It is used in the calculation for QBI but is not income.

@taxmoney101 

[Kern County Camper]

Hi Patricia, 

Thank you for helping me yesterday on K1 Box 20 AJ. Now I have that done. Today's question is about K1 Box 20 Z.  I do not have a Section 199A in my K1. Instead I have in my K-1 the following:
Statement A – QBI Pass-through Entity Reporting (Schedule K-1, Box 20, Code Z

This has an entry for Rental Income which is a loss and an entry for Section 1231 which is a gain. I also has an entry for UBIA of qualified property which is a gain.

When I entered the UBIA on my TurboTax for Code Z and did a smart check, it is saying I need to report info from Section 199A, but again I am not seeing a part of my K1 with this title.

I also have a Schedule K-3 that is part of my K-1 and I am not seeing any questions as I am filling out the info about my K-1 about a K-3. There are a lot of numbers on the three pages of K-3. Not sure if these need to be addressed with my taxes.

As always, thank you for your help.

[PatriciaV]

The QBI questions appear at the end of the Schedule K-1 interview, after you have entered the boxes listed on the K-1. Eventually you'll come to a page "We need some information about your 199A income." Check the box for business income, Section 1231, and UBIA, which opens boxes for you to enter the amounts shown on Statement A.

Be sure you check Box 16 for Schedule K-3. How you enter the information from this schedule depends on your tax situation. The info typically applies to foreign partners or those with other foreign income.

@Kern County Camper