Question

I have two related S-Corps reported on a K-1. I want to aggregate them on form 8995-A. What do I do to get that accomplished?

Forum|Forum|5 years ago
May 15, 2020
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TurboTax Online

Go back through the interview for each S-Corp K-1 you entered into TurboTax. You should then encounter the screen "Should [name] be treated as part of a combined business?". That screen will give you the option to combine the business/rental into another or indicate that the "business" is independent of any other activities.

Here is a screenshot of the screen you need to aggregate your S Corp K-1s:

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R

rhesslerAuthor

Thank you for the advice. That did the trick. I rarely use the step by step process so never even thought about going that route. If I can't figure something out in the future, I will likely give that a shot. Thanks again.

A

AFaith

How do I aggregate 4 businesses on form 8995-A? It will only allow me to aggregate 2.

DavidS127

If you are using TurboTax Online, you aggregate four QBI businesses by finding the question in the TurboTax interview about combining the entity with others. On each additional "source form" you are using (e.g., Schedule K-1, Schedule C, Schedule E), choose to combine that entity with one of the source entities already entered. If you keep combining a new source form with one that has already been entered, those businesses will all be aggregated.

If you are using TurboTax Download/CD, you can link all your source forms (Schedule K-1, Schedule C, or Schedule E) to the same QBI Component worksheet in Forms mode. Find the source form for each entity, and then find the Qualified Business Income Deduction Smart Worksheet for that source form. Look for the question in that smart worksheet asking which QBI worksheet to report. You can either click the QuickZoom button or double-click the box. Choosing the same QBI Component worksheet for all your source forms will aggregate them for QBI calculations.

Keep in mind that the IRS has rules about combining (aggregating) your QBI businesses. Refer to the IRS instructions for Form 8995-A for more information on aggregation.

If your taxable income is $160,700 or less for Single status, or $321,400 or less for Married Filing Joint status, there is no advantage to combining your businesses for QBI purposes. You can always choose to combine them in a later year if your income level makes it advantageous.

If your taxable income is more than $160,700 for Single status or $321,400 for Married Filing Joint status, there may or may not be an advantage to combining your businesses for the QBI deduction. It depends on the relative amount of income, W-2 wages paid, and assets for the businesses. If there is an advantage you can choose to aggregate, if not you can always combine them in a later year when it is advantageous. But, once you combine (aggregate) businesses for QBI purposes, you must combine them in later years.

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