I have entered my K-1 information, but Turbo Tax prompts me to enter my "QBI Passive Op Loss" at income review. What is that field? What should I enter?

Forum|Forum|1 year ago
March 23, 2025
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I tried entering my net rental real estate loss, but Turbo Tax wouldn't accept that value.

Best answer by PatriciaV

In most cases, you can enter zero for this review message. If there isn't an entry box above the sub-form that appears, you'll need to scroll down until you see a field highlighted in red (or a box labelled "QBI Passive Op Loss").

@Velayudhan

JamesG1

Are you referring to entering the Section 199A information so that the Qualified Business Income Deduction may be calculated?

For IRS Schedule K-1 (1065), at the screen Enter Box 20 info, select code Z Section 199A information. A value does not have to be entered.

Then click Continue.

At the screen We need some information about your 199A income, click the box to the left of the item to be entered. An entry box will open. You may be entering:

Ordinary business income (loss) from this business,
W-2 wages for this business, and
UBIA of qualified property for this business.

Enter these values for the qualified business income deduction to be calculated.

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dspringallAuthor

Yes, Section 199A info.

My K-1 has Z* in box 20, leading to a page that lists amounts under the QBI or Qualified PTP items for

- Net rental real estate income (loss)

- Section 1231 gain (loss).

It also lists an amount for Qualified property.

I left Box 20 for Z-Section 199A blank, then entered the corresponding (I think) amounts in the screen for We need some information about your 199A income:

Put the amount for Net rental real estate income (loss) into Rental income (loss)

Put the amount for 1231 gain (loss) into Section 1231 gain (loss)

Put the amount for Qualified Property into UBIA of qualified property

At review, I am prompted to enter my QBI Passive Op Loss. This is the value I'm not sure of. 0 is accepted; the net rental real estate income (loss) is not accepted.

PatriciaV

Employee

Please provide the exact wording of the message you receive regarding the QBI Passive Op Loss. Does the program present a form for you to enter a value? A screenshot might be helpful.

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Velayudhan

Have the same exact issue.
Once TurboTax reviews the return, I come to the page "Check This Entry".
I am asked to enter "Operating Loss"
But there is no field called "Operating Loss" in Section 199A information.
The fields that exist in 199A for QBI are:
- Ordinary business Income (loss)
- Net rental real estate income (loss)
- Other net rental income (loss)
- Royalties
- Section 1231
- Other Income
- Sec 179 deduction
- Other deductions
Which field above corresponds to "Operating loss" field in the "Check This Entry" form in TurboTax?

Velayudhan

Missed to mention...
The Check This Entry page has this message at the top:
Sch K-1 Wks-Partnerships (<firm name>): QBI Passive Op Loss must be entered.