QBI you vs them

[ILLMAS]

I've been digging around ATX and Proseries to see if in anywhere one can check-off to let the K-1 recipient know they qualify QBI or the person preparing the tax return know.  Does it exist and maybe I am not seeing it?  I would hate for the IRS to challenge a TP because their preparer took QBI on a candy store or any non-qualifying business.

[cred65]

The Planner in 2017 has a tab For QBI for entry of the data.

[Jack from Ohio]

1 hour ago, ILLMAS said:

I've been digging around ATX and Proseries to see if in anywhere one can check-off to let the K-1 recipient know they qualify QBI or the person preparing the tax return know.  Does it exist and maybe I am not seeing it?  I would hate for the IRS to challenge a TP because their preparer took QBI on a candy store or any non-qualifying business.

QBI is not determined by the person that creates the K-1.  There are several other factors, that determine I a K-1 qualifies for QBI.

[ILLMAS]

Correct, I’ve been thinking QBI is only for SSB.

[Joel]

I disagree.  The person creating the K-1 has to indicate to the partner/shareholder/REIT owner how much of the income generated is from QBI sources.  It is reported on the K-1 on lines 20/17/14 (I am not sure of the exact line numbers) to be input onto the K-1 worksheet of the final personal tax return.  When preparing the personal tax return we must include all forms of QBI, including Schedule C (if any), to determine the final amount of QBI, subject to taxable income limitations.

[grandmabee]

I agree the information MUST be on the K-1 for the personal return preparer to then see if they still qualify.  3 different update seminars I went to said that was going to be the biggest problem this year and also a big liability for the entity preparer if they don't include it on K-1's.

 

[cred65]

It is to appear on Code 17 Lines V,W,X,Y,Z and entered under Detail of K-1

[KEYWEST_RICKS]

For partnership I found the Sec 199 additional info I think under special allocation tab.....down to line 20

 

has for w-2 info and basis of property 

[Roberts]

On 1/4/2019 at 4:04 PM, cred65 said:

It is to appear on Code 17 Lines V,W,X,Y,Z and entered under Detail of K-1

You sure about this? Line 20 instructions for code z

Code Z. Section 199A qualified business

income.

Use the appropriate worksheet to

report your portion of qualified business

income.

•

Qualified Business Income—Simplified

Worksheet, line 1. See the Instructions for

Form 1040.

•

Pub. 535 Worksheet. If a specified service

trade or business, see Schedule A; if you are

electing to aggregate this trade or business

with another, see Schedule B; if any of your

qualified trades or businesses generated a

net loss, see Schedule C; otherwise enter

information on lines 1 and 2

[cred65]

I was referring to a 1120 S.  Line 20 for 1065.