Schedule K-1 Box 20 code z Section 199A Income

[tahtx]

Hi,

I received a K-1 and Box 20 code Z  says "SEE STMT"

TT is asking to enter information from Statement A.  I only received a section called Additional Footnote Information.  

The footnote includes the following:

Box 20, CodeZ: Section 199A Income

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ACTIVITY*                                     Amount

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Leasing                                           $xx

Financing                                       $xx

Section  199A Income Total       $xx

*All activities are qualified trade or business ("QTB")

Question: How do I enter this into TT?  Is this "Other Income (Loss)"?

Thanks!

[DavidS127]

The questions you will need to resolve before you enter these amounts are: i) how this "Leasing" and "Financing" income correlates to the box 1, box 2, or box 3 income being reported on your K-1; and, ii) whether all the income was generated by the partnership that sent you the K-1, or if instead any of the Section 199A income was received by the partnership from another entity. 

The reason those questions are important are because if you get a K-1 with an amounts in multiple 1, 2, and 3 boxes (e.g., box 1 and box 2, or box 1 and box 3, or box 2 and box 3) you will need to enter separate K-1 forms for each box 1, 2, or 3 amount on your K-1.  And, that separate K-1 must have the portion of the other box 4-20 amounts that "go with" the box 1, box 2, or box 3 amount that is being entered on that separate K-1.  And, if the Section 199A amounts are "passed through" from another entity, there will also need to be a separate K-1 for each entity (e.g., one for the "main" partnership and one for the "passthrough" entity).

Once you get all that sorted, here is how to enter your box 20 code Z amounts on each K-1 you must enter for the single K-1 you received:

Enter your code Z on the "box 20 screen".  You don't need to enter an amount on that box 20 screen, but you do need to click Continue after you have entered the code Z.   The next screen is "Describe the Partnership" and the next screen is "We see you have Section 199A income" and then you should get "We need some information about your 199A income", followed by "Let's check for some uncommon adjustments".   If you get to those last two screens, when you check the box on a line, other boxes will "open up" to enter the amounts from your Section 199A Statement/STMT.

Note that Unadjusted Basis of Assets amount goes on the "....has UBIA of qualified property" line.

To get back to the K-1 summary screen and find the Schedule K-1 to edit, click the "magnifying glass Search" icon on the top row, enter "k-1" in the search window and press return or enter, and then click on the "Jump to k-1" link to find the K-1 you need to edit (or to enter an additional K-1 if needed).

Here are screenshots of the "We need some information about your 199A income or loss" and "Let's check for some uncommon adjustments" screens where you enter the information from your K-1 Section 199A Statement/STMT:

[PM1968]

My K-1 question "We need some information about your 199A income"  It does not have the option for the Net Rental Real Estate Income. 

[samzandt]

Thank you. The information you provided is helpful to me too. One follow-up question... In my Statement A I have information from 3 different pass-through entities. When I select "The income comes from another business" TT asks for the business name and the information from the Statement A, but it only allows me to enter one business and I have three. How do I enter all three? Thanks