Section 199A Publicly Traded Partnership (PTP) Income

[Christian]

A client has come in with his recently received Schedule K-1 Form 1065 for a publicly traded partnership he has. In box 1 ordinary business income is reported on which he has to pay tax on even though he did not receive this income (so he says). I prepare a tiny few of these and normally have no problems but this one has an item I have not seen. On the second page of the form under information for line 20 Other information it indicates that all the ordinary business income shown in box 1 is Section 199A Publicly Traded Partnership Income. I read this to mean that 20% of this income can be deducted on his Form 1040. The problem is I cannot seem to find a line item in the ATX K-1 entry form which will carry this amount to Form 8995and then carry the 20% to the Form 1040. Has anyone a solution for this ?

[Abby Normal]

Income from a partnership is taxable even if it's left in the partnership. The K1 should also show distributions.

If you scroll down about 3/4 of the page, there is a Section 199A Information area.

In the future, watch out for partial dispositions. They're very easy to miss.

[BrewOne]

There should be an entry for Line 20, Z on the K-1.  As Abby mentioned, scroll down past that to a separate "Section 199A Information" to make entries.

[Christian]

I am going with AO PTP information in Section Z Section 199A information and hope it works. Many thanks to you both.