DPAD 1099A(g) Form 8995-A

[JackieCPA]

Hello All! 

I am having a hard time. I have a client with DPAD passed through to them on 1099-PATR. I know that it goes on Form 8995-A line 38. However, should the rest of the QBI information then all be on the 8995-A? Right now, ATX is putting the QBI for the "normal" part of the farm on the simplified 8995, but the DPAD is on the 8995-A. Should it all just be going on the 8995-A? 

[Lee B]

There is a thread which started last Thursday with 10 posts discussing your question.

[jklcpa]

 

[JackieCPA]

I'm just going to have to call ATX, I think it is more of a software not doing what it is supposed to be doing problem.

 

Thanks!

[DANRVAN]

4 hours ago, JackieB said:

I'm just going to have to call ATX, I think it is more of a software not doing what it is supposed to be doing problem.

This is an issue that I would not trust the software on.  You have three moving parts here:

-DPAD from the COOP per 199A(g),

-the "patron reduction" per 199A(b)(7),

-and QBID which is reduced by the "patron reduction".

This all came about from a proposed reg in June 2019.   There is an IRS  Q and A ,https://www.irs.gov/newsroom/tax-cuts-and-jobs-act-provision-11011-section-199a-qualified-business-income-deduction-faqs 

I have a few clients that this will apply to and personally will need some more research before I file for those in the coming weeks.  

[DANRVAN]

10 hours ago, JackieB said:

I have a client with DPAD passed through to them on 1099-PATR

Jackie,  can you post the amounts in boxes 3, 6 and 7?  

 

 

[JackieCPA]

Box 3 $38,000, Box 7 $7,000. 

QBID before DPAD is $6,000.

If I put the DPAD on the 8995-A page two, it only brings the DPAD to the 1040. It leaves the $6000 on the 8995 simplified form. I need it to go to the A

[JackieCPA]

False alarm, it was a software issue and was fixed