Question

Section 199A

Forum|Forum|4 years ago
April 9, 2022
1 reply
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Hi, We received a k1 from a family trust after my wife's parents passed away. On its K1 under 14 I it says STMT.

On the statement and footnotes page under 199A it shows a business name then a share of ordinary business income amount its a gain, then it lists the same business name and a share of ordinary business income and its a loss. Do I net these amounts? I asked for copies of the K1's for this company that were sent to the trust and they are 100% identical one shows a gain the other shows a loss.

Really confused about what to do.

PatriciaV

Employee

Are either of the Schedules K-1 sent to the trust marked "Amended" at the top? It's possible that one supersedes the other. If not, confirm that the EIN is the same on both K-1s.

If you are certain the K-1s are identical, except for the amounts for Ordinary Income, then combine the two numbers for Section 199A on your tax return.

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