@pencil123 - No your distributions in box 16 code D should be gross distributions.   There are many factors in calculating the QBI and many of those factors are not provided in your facts.  Are you a specified service trade or business Wages paid to yourself Overall taxable income Etc Additionally, this calculation is really outside the scope of being able to determine in a forum such as this. The ordinary distribution should not impact your QBI calculation.  Take a look at the worksheets for this and also the form 8995.  Did you accidentally reflect this as a dividend somewhere?  Also keep in mind that this is early in the season for software providers such as TT and, in general, not everything works as it should.  No question that this is not a new item, but sometimes things go awry.  Make sure you have the latest version.  Depending on what version you are using, you may be able to get technical support from a TT representative.   ... View more

To expand on the response by @ee-ea, if your LLC is disregarded, you will file this information on a Schedule C.  ... View more

While the 2020 instructions still appear to be in draft form, the coding for this item remains the same as that in 2019.  You will use code D on line 16 of the Schedule K-1. ... View more

Reread @ThomasM125 response. If you charged the expenses in 2020, then you need to reflect those as expenses on your 2020 books and records.  The entry would be no different than if you had purchased each items separately; which is how you will enter the expenses incurred.  You will debit whatever expense account the item applies to and then credit a liability; credit card liability account.  When it is paid, you will debit the credit card liability account and then credit cash. ... View more

Perfect.  The clarification helps. ... View more

As a follow-up, I just want to make sure you are comfortable with the position that the paralegal is in fact an independent contractor and not an employee. This is a facts and circumstances area.  Some items to look at: take a look at Rev Rul 87-41; old but still used  the key and main focus is do you have the right to direct and control you can also look at Pub 15-A   ... View more

While you may be able to handle this yourself, I would concur with @tagteam in spending some $$ to visit with a tax professional and get you on the right track.  Especially the first year. Here is the revenue procedure for handling late elections. Rev Proc 2013-30. https://www.irs.gov/pub/irs-drop/rp-13-30.pdf       ... View more