QBI and REIT pass through

[tide]

As of March 5, 2020, QBI deductions are not being computed and deducted in TurboTax for section 199A REIT entries indicated as Box 14 code I entries on the K-1 form. To claim the deduction, override line 9 of Turbotax form “Qualified Business Income Deduction Summary” with the total of section 199A REIT dividends reported on your K-1. The value will pass to form 8995 and the computed deduction will appear on line 10 of your 1040. This deduction pass through is permitted for beneficiaries of charitable trusts.  

[DawnC]

TurboTax does compute the QBI deductions from K-1s.  If you manually override the forms, you will not be able to e-file and you void the accuracy guarantee.  As long as you have the code I in Box 14, the QBI will be generated.  There are a few questions that need to be answered in addition to using the Code I entry on the K-1.  Type qbi into the search bar and use the Jump to qbi link to be taken to the follow-up questions that need to be answered to generate the deduction.  

[tide]

Your solution does not work. TurboTAX  2019 changed the K-1 entry questions from TurboTax 2018. TurboTax 2019 correctly applied the QBI section199A REIT dividend deduction using information reported on my charitable trust's K-1. In 2018 the Turbotax code for the trust K-1 box 14 entry was “IC- section 199A REIT dividends” and the 2019 code is “I – Section 199A information”. Also in 2019, two additional question pages were added for information on the employer for the business and information on the 199A income or loss. Selecting code I and answering the questions on the new pages does not carry the REIT dividend to form 8995 or the deduction to the 1040. I do not e-file, so the override I have to make is not a problem.  I have entered my data any number of ways including starting from scratch, and the result is alsways the same, no deduction appears on line 10 of the 1040.

[tide]

Typo in my response, second sentence should begin "TurboTax 2018  correctly .....

[DavidS127]

The issue with REIT 199A dividends reported on a trust Form 1041 Schedule K-1 is being worked on.  The issue was scheduled for resolution on 3/6/2020, but may take a couple of days to show up as an update.

The issue is that the REIT net dividends in section D-2, Line I 3 of the trust K-1 don't "flow" to the Line 9 of the QBI Ded Summary.