Entry for Sec 199A on 1099-PATR

[WITAXLADY]

So I am searching on where to enter the Sec 199A dollar amounts?

Do they get entered on the 8995 and are called REIT?

Farm has from 1099-PATR - $20,0000 and $30,000

Please advise

Thank you,

D

[jklcpa]

On 10/4/2024 at 8:58 PM, WITAXLADY said:

So I am searching on where to enter the Sec 199A dollar amounts?

Do they get entered on the 8995 and are called REIT?

Farm has from 1099-PATR - $20,0000 and $30,000

Please advise

Thank you,

D

Darlene, I don't use ATX and have no farmers, but since you've not received any answers, I will try to help in a more general way.

You should have an input area to enter all or most of the information from the 1099 PATR amounts that will flow to Schedule F.  That input area may, or may not, have a place to enter the information for what's shown on the PATR lines 8 & 9.  If you don't see a place to enter anything for boxes 8 & 9, you may have to enter it on the input area for the Sch F. I would think that the input area for Sch F should definitely have an area for you to enter the QBI-related information, and so you shouldn't have to enter anything directly or override anything on the 8995.

Those boxes 8 & 9 on the PATR show the amount of the coop income already reported on the PATR (boxes 1,2,3,5) that also qualifies for the QBI deduction.

I can't tell you if it has anything to do with a REIT. What type of activity is your client involved in?

[Abby Normal]

The income should go straight on the Sch F. I don't do any farmers but doesn't that flow automatically to 8995?

[jklcpa]

14 minutes ago, Abby Normal said:

The income should go straight on the Sch F. I don't do any farmers but doesn't that flow automatically to 8995?

It should, but Darlene was questioning specifically where to enter the dollar amounts from boxes 8 & 9 which show the portion of the farm income that is QBI-eligible income. 

Drake has a screen specifically for entering every amount from all the boxes on the 1099-PATR, and also has a section on the Sch F input to designate items affecting QBI or how much of it is QBI eligible. I'm really very surprised that ATX doesn't have something similar.  In any case, I don't think it is wise for the OP to enter anything directly on the 8995.

[DANRVAN]

21 hours ago, Abby Normal said:

The income should go straight on the Sch F. I don't do any farmers but doesn't that flow automatically to 8995?

That is correct.

The only input needed is for the amount in box 7 of the 1099 to calculate any reduction in the QBI deduction per sec 199A(b)(7).

The entry is made on the "activities" tab for form 8995 in ATX.  Input the amount from box 7 in the second column from the right titled "payments from  coop.."

In the last column you enter any wages that were paid by the taxpayer which are allocable to the amount in box 7.

The entries will flow to 8995A schedule D to calculate the 199A(b)(7) reduction, if any.

20 hours ago, jklcpa said:

In any case, I don't think it is wise for the OP to enter anything directly on the 8995.

That would be double dipping!

[DANRVAN]

33 minutes ago, DANRVAN said:

Input the amount from box 7

I meant to say the amount of QBI allocable to the amount in box 7.

If the farmer paid zero wages there is zero QBI reduction.

[WITAXLADY]

-0- wages - even if the coop has numbers - as they would have paid wages??

Thank you

I am switching to Drake! and no ATX does not have a place for 1099-Patr!

Thx d

[JackieCPA]

I use ATX and have quite a bit of farmers - depending on what you are asking this may or may not be helpful (depending on exactly what you are asking). 

On a 1099-PATR - 

Box 1: Patronage Dividends go straight to the Sch F

Box 8: Section 199A(a) qual. items get entered on the activities tab of the 8995 under "payments from cooperative"

Box 6: Section 199A(g) deduction (which is the old DPAD) gets entered on the 8995-A, page 2, line 38 "DPAD under section 199(g) allocated from an agricultural or horticultural coop" - this increases their QBI deduction. If they have a loss or their income is over the threshold, the fact that they don't pay wages won't give them any deduction. 

I don't often see anything else on a 1099-PATR so I am hoping I am being helpful!