GRANTOR TRUST LETTER WITH SECTION 199A QUALIFIED BUSINESS INCOME

Forum|Forum|3 years ago
April 12, 2023
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I HAVE A GRANTOR TRUST LETTER AND THE INSTRUCTIONS FROM HGR LIQUIDATING TRUST SAY TO ENTER INFORMATION AS A K1 FOR A FORM 1041. THERE IS SECTION 199A QUALIFIED BUSINESS INCOME OF $-181.00. THE SECTION 199A UBIA IS $0.

I HAVE ENTERED THAT INFORMATION BUT WHEN TURBO TAX DOES THE REVIEW I GET THIS MESSAGE: SCH K-1 WKS-ESTS AND TRUSTS BOX 14 CODE I HAS BEEN SELECTED BUT NO SECTION 199A INCOME HAS BEEN ENTERED ON STATEMENT A. I DO NOT KNOW HOW TO FIX THIS. I CANNOT EFILE THE RETURN. THANK YOU FOR YOUR ASSISTANCE.

DianeW777

It depends. There are many factors to consider with the qualified business income deduction (QBID). You should contact the company or person who prepared the statement for your 1041 tax return for the amount of qualified business income (QBI) that creates the QBID $-181. The taxable income on your individual return is a factor to determine the amount allowed as well as other and it may have to be carried over to 2023. The initial calculation would be 20% of the QBI.