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Employee
February 27, 2020
Question

How to abandon QBI deduction on K-1 income?

  • February 27, 2020
  • 1 reply
  • 0 views

I received K-1 schedule (the amount of Code Z is marked as 'SMAT'), it came with 'Partner's Section 199A information worksheet' for Code Z which itemized the QBI income, but the CPA who prepared K-1 form told me the income on K-1 is not eligible to get QBI deduction.

 

In TT, I was required to enter value (number format) for Code Z and 'SMAT' wasn't allowed in TT. What I found is as long as I entered a number for Code Z, TT automatically used QBI deduction. Since I have been suggested that not use QBI deduction, can I enter $0 for Code Z even I was given Partner's Section 199A information worksheet' for Code Z with itemized 199A information?

 

    1 reply

    Critter
    Employee
    February 27, 2020

    Easy ... simply don't enter in anything in those sections ... not even a zero or a code.