Why does Turbotax desktop assign me income from REIT or a PTP which I don't own, and QBI deduction from this?

[chizimeo]

I use Turbotax Desktop Home and Business and it shows up on this page , thanks 

[JohnB5677 · Accepted solution]

It is possible that you are getting REIT income from the 1099-DIV's that you posted.  

Qualified REIT dividends from a fund are reported in Box 5 of your Form 1099‑DIV.

[Critter-3]

Or thru a K-1  ... but the screen shot you posted gave you no such deduction ... just information as you pass that section of the program unless you removed the amounts. 

[chizimeo]

Wow! This is indeed the case, I reported this section 199A income in Box 5 of my 1099-DIV. Thank you! 

[uniqueusername]

i have 1099 box 5 (199A) income that is *not* from a REIT. but turbotax seems to insist on this being the way it's characterized. 

[Critter-3]

@uniqueusername 

which 1099 form are you seeing a box 5 1099-A entry in ?  

[uniqueusername]

a 1099-R, for one of our IRAs. thanks!

[uniqueusername]

sorry, a !99A in box 5 on a 1099-R. 

[DawnC]

That does not sound like a 1099-R.   Are you sure the form with the Box 5 amount is not a 1099-DIV.    Form 1099-DIV with dividends marked in box 5 qualify for the Qualified Business Income (QBI) deduction.   

Eligible taxpayers may be entitled to a deduction of up to 20 percent of their combined qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership (PTP) income. This component of the section 199A deduction is not limited by W-2 wages or the UBIA of qualified property.   @uniqueusername 

[uniqueusername]

Thank you, and an apology. it is, as you said, from forms 1099-DIV not 1099-R. (I was responding from memory, using my phone, and did not have ths file open. i won't do that again.)

The amount in box 5 (Section 199A) in several 1099-DIV forms gets picked up in form 8995 as <REITs and "publicly traded partnerships"> - although in some places, only the REIT reference is shown. i managed to miss the PTP reference in 8995, and the amount properly gets carried to form 1040 line 13.

I imagine i can find those partnerships in my Schwab details. 

Thanks again for leading me to the answer!

[dj-h]

I have a similar situation.  TurboTax imported the information from my financial institution's Consolidated Forms 1099 (DIV-INT) and it's including the interest from box 5/section 199A dividends, which generated forms 8995 and QBI Deduction Summary.  I don't have a small business, so should I go in manually and delete those two forms or is this an allowed deduction?

 

[JamesG1]

You likely qualify for the deduction.

IRS Form 8995 computes the Qualified Business Income Deduction and should reduce your tax burden by reporting a deduction on line 13 of the Federal 1040 tax return.

The REIT / PTP component can be generated from qualified real estate investment trust (REIT) dividends or qualified publicly traded partnership (PTP) income.  This component may be reported on an IRS form 1099-DIV.

See also this IRS Publication.

@dj-h 

[dj-h]

THANK YOU!

I found this string of answers that were also helpful, should anyone be looking for more info.

https://ttlc.intuit.com/community/taxes/discussion/relationship-between-qualified-business-income-qb...