Problem with Trust K1 that includes Section 199A Dividends from REIT ETFs

[ColetteBurrus]

I have a K1 with income from REIT ETFs, where the dividend income amount is specified in box 14 code I (Section 199A Information). When I enter this information into TurboTax, it asks me for "name and employer ID for the business".  It looks like TurboTax is trying to create a separate qualified PTP income entity for the dividends, rather than include this income with qualified REIT dividends that I have from other 1099-DIVs. Is this a bug in TurboTax? Last year's TurboTax had separate box 14 codes for REIT Dividends (IC) and PTP Income (ID). This year, it's just got the single code (I), and I can't figure out how to get it to treat my REIT dividends properly. 

[tagteam]

That would be for the 199A deduction and you would enter the name of the PTP and EIN or, alternatively, you could enter the name of the trust (or estate) and the EIN.

[ColetteBurrus]

Thanks for the reply. There is no PTP/EIN associated with the REIT holdings in the trust (that's what was so confusing about what TurboTax was asking for). I tried entering the trust name and EIN. It then took me to a screen where it asked for details on the REIT dividends. I entered that information, and it now shows tentative & net REIT dividends in the K1 worksheet, but this information isn't being properly passed along to the Form 8995. The Form 8995 lists the trust name & EIN with qualified business income=0, and the Qualified REIT dividends in the Form 8995 only shows income from another 1099-DIV.  Any suggestions on how to get it to recognize the trust's REIT dividends? I'd like to use the full QBI deduction I'm allowed.

[tagteam · Accepted solution]

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@ColetteBurrus wrote:

Any suggestions on how to get it to recognize the trust's REIT dividends? I'd like to use the full QBI deduction I'm allowed.

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Not really other than contacting Support (link below). I have not been successful with test returns either so there could possibly be a coding (related to linking forms) issue. 

https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632

[ColetteBurrus]

Thanks for your help on this. I spoke with TurboTax support. They are aware of the problem and are working on a fix.

[renogeno]

Having same problem, please post updates as available.

[Mike410]

Me as well. Doing my widowed mom's taxes, which includes my father's trust.  Was hoping to file this month, but I suppose "wait" is the answer now.

[MaxG]

1. Having the same problem with a K-1 1041 Trust Beneficiary form.  If I override and add the non-propagated REIT dividends to form 8995-A, I get a message in Federal Review that I might not be able to e-file.  I was on the phone for an hour with a TT CPA yesterday who was unaware of the issue and was unable to suggest a course of action.  They are supposedly looking at the issue.  Apparently, last year there was a code IC (ic) that could be selected in the drop down list which fixed the issue.  This year there is no such code and code I puts you into the QBI/PTP wasteland when my situation is definitely NOT a business.

[renogeno]

That's funny (not) that the TT CPA wasn't aware of the problem, as the OP stated above that TT was aware and working on it over a week ago!

[renogeno]

Still no help from TT? What do we do..........just skip it? This is ridiculous. Come on TT, give us something!!

[ColetteBurrus]

I was told that they would email me when a fix is available. I will let you know when I hear anything.

[renogeno]

Thank you!

[dianeled]

I am having the same issue! This is the first year I've gotten a K-1 so I thought I just didn't know how to enter it. Hope to see the fix soon!

[DavidS127]

I can confirm that the issue with REIT 199A dividends reported on a trust Form 1041 K-1 is being worked on.  I will update you when the issue has been resolved.

[renogeno]

Thank you!