QBI Deduction Form 8995

Forum|Forum|5 years ago
April 10, 2021
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How do I add multiple Businesses on Form 8995? I have 3 listed on my Schedule K1 and the software only allows 1.

JamesG1

Level 15

Are these partnership K-1's? Please clarify.

When entering the K-1's, at the screen Enter Box 20 info, have you selected code Z Section 199A information. Code Z for all three K-1's?

This code tells the software that qualified business income information needs to be entered at the screen We need some information about your 199A income. Select Code Z and enter $0. Click Continue.

At the screen We need some information about your 199A income, you enter at least the business income (loss) and other information, such as:

Ordinary business income (loss) from this business,
W-2 wages for this business, and
UBI of qualified property for this business.

These values may be found on an enclosed statement and not on the K-1 itself. Enter these values for the qualified business income deduction to be calculated.

The Qualified Business Income Deduction was created by the 2017 Tax Cuts and Jobs Act (TCJA) and is in effect for tax years 2018 through 2025.

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johneyatesAuthor

Level 2

Yes, this is from one K-1. However, there are 3 separate businesses (each with a different tax ID) listed on this one K-1. All are businesses owned and operated by this Partnership. Each have amounts for Income (loss), W-2 and UBI. The software only allows entry of one Code Z per K-1 but the 8995 tax form allows for multiple entries. The software should be enhanced to allow for multiple Code Z entries here. I was able to get around this by adding two additional K-1 forms with only the Line 20 Code Z information. But, this does not feel right and I'm not confident that this is correct. I have not printed the forms yet to check.