K-1 Line 20 Z (199A) with multiple activities

ftusa
ftusa Member Posts: 4 Newcomer
edited April 10 in Income

I have a single K-1 form with multiple rental properties and Passthrough entities listed in the SECTION 199A INFORMATION, BOX 20, CODE Z, like below:

Rent - Property 1 address
RENTAL INCOME (LOSS) -****.
UNADJUSTED BASIS OF ASSETS xxxx.

Rent - Property 2 address
RENTAL INCOME (LOSS) -****.
UNADJUSTED BASIS OF ASSETS xxxx.

PASSTHROUGH - ABC LLC
EIN: 9999999
RENTAL INCOME (LOSS) -****.
UNADJUSTED BASIS OF ASSETS xxxx.

PASSTHROUGH - XYZ LLC
EIN: 11111111
RENTAL INCOME (LOSS) -****.
UNADJUSTED BASIS OF ASSETS xxxx.


How do I enter this information when I get to the "Enter the amounts from your K-1 QBI statement" screen? Should I sum up all the RENTAL INCOME (LOSS) and UNADJUSTED BASIS OF ASSETS values from the K-1 and enter in the Rental Income (Loss) and UBIA of Qualified Property fields in this screen? Or, should I create multiple K-1 entries using the same partnership name and EIN as the first entry, where I do not repeat any amounts except the Box 20 Z field in subsequent entries (Box 2, 5 and Box 20 A, N are entered only on the first K-1 entry) and then enter each line item from 199A into the QBI statement screen?

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Answers

  • ftusa
    ftusa Member Posts: 4 Newcomer

    I am seeing the following error when I create multiple K-1 entries as you recommended. This is a red alert and is not allowing me to file until I correct it. How do I proceed with this approach?


    Partnership (Schedule K-1) Income/Expenses Missing
    You didn't enter income or expenses for these partnership K-1s:
    <Partnership Name>

    <Partnership Name>

    <Partnership Name>
    …

    Please go back to the Your Partnership or LLC Income (Schedule K-1) screen and review the partnership K-1s listed above.

    If you did NOT have any income, expenses, or carryovers for a partnership K-1 listed above, please go back to the Your Partnership or LLC Income (Schedule K-1) screen and delete it.

  • CoryF
    CoryF FreeTaxUSA Agent Posts: 236 image
    edited April 17

    Hello ftusa

    Our software requires you to enter more than one Schedule K-1 in the case that your Partnership or S-Corporation has more than one of the boxes 1, 2, or 3 with entries. Our software needs a different K-1 to report to proper place for Ordinary Income (box 1), Rental Real Estate income (box 2) or Other Rental Real Estate (box 3).

    Your alert would indicate that the separate K-1(s) didn't have the entries into the separated boxes. A Schedule K-1 without any box entries does not allow our software to move forward for filing purposes as it is expecting to have entries to add to other forms and schedules.

    For privacy and security issues, please log in to your account and contact a Support Agent via live chat, if you have Deluxe or Pro Support, or send a customer support ticket issue so that your account can be reviewed.

  • WrenD
    WrenD FreeTaxUSA Admin Posts: 43 image

    Our K-1 entry screen supports one trade or business per K-1 under Box 20 code Z, so we're unable to accept separate amounts for each property listed on your statement. If your K-1 specifically identifies these properties as a single aggregated trade or business (an election has been made with the IRS), you can enter the combined totals as one K-1 entry. If it doesn't, this is a situation our software doesn't currently support.

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