Schedule K-1 (Form 1065) Box 20, Z STMT, Schedule 199A

[momo_18]

Hi, 

My K-1 Rental Real Estate income is entered (box 2) as (loss) -1000.  Under box 20, I have code Z STMT.

In K-1, Section 199A information includes rental income information for 5 different locations. Each dollar value is different, but for example, I am entering it in a random format below: 

Rent - Location A: Rental Income (Loss) $100, Unadjusted Basis of Assets $1000

Rent - Location B: Rental Income (Loss) $200, Unadjusted Basis of Assets $2000

Rent - Location C: Rental Income (Loss) $300, Unadjusted Basis of Assets $3000

Rent - Location D: Rental Income (Loss) $400, Unadjusted Basis of Assets $4000

Rent - Location E: Rental Income (Loss) $500, Unadjusted Basis of Assets $5000

Rent - Unallocated Expenses: Rental Income (loss) $-2500

This is my first time becoming a business (Limited, Domestic, Individual) partner or first-time K-1 filer.  Following is my question:

1. Do I need to enter all five individual entries, or do I need to sum up all values for each option: Rental Income (loss) and UGA values? 

2. Where do I need to enter Unallocated Expenses Rental Income (loss)?

3. Will TT software calculate QBI automatically or do I need to do anything for that step?

I am using TT Delux Desktop version which has interview questions for Schedule K-1 (Form 1065). 

Let me know if you have any questions. I will greatly appreciate your response. 

[Mike9241]

Rent - Location A: Rental Income (Loss) $100, Unadjusted Basis of Assets $1000

Rent - Location B: Rental Income (Loss) $200, Unadjusted Basis of Assets $2000

Rent - Location C: Rental Income (Loss) $300, Unadjusted Basis of Assets $3000

Rent - Location D: Rental Income (Loss) $400, Unadjusted Basis of Assets $4000

Rent - Location E: Rental Income (Loss) $500, Unadjusted Basis of Assets $5000

Rent - Unallocated Expenses: Rental Income (loss) $-2500

in the desktop version, there is section D! towards the bottom of the k-1 form

check the aggregate box

total above  = -1000 enter on ordinary income line (this matches line 2 which it should)

on the line that has UBIA of Qualified property enter the total = $15,000

TT figures QBI deduction from your entries but you won't get any this year because of the loss on line 2.

form 8995A will be generated which is where the QBI is calclated.

[momo_18]

@Mike9241 Mike9241

Hi Mike, 

You said the first value to be added in the Ordinary Income line. Since this K-1 is related to Rental, do you think I need to enter the value in the Rental Income (loss) line?

Also, the first value needs to be the sum of all rental income (loss) of $1500? 

Thanks!