Question

Am I eligible for 199A deduction

Forum|Forum|6 years ago
May 10, 2020
1 reply
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I am a Limited partnership member of an LLC whose only business is to lend funds to real estate developers. I received a K-1 for distribution of $10,000 and my total income for 2019 is under the threshold of $160,700. Is the LLC's business considered as a qualified trade or business or specified service trade or business? More importantly, can I receive a 20% deduction?

CatinaT1

On your K1 you should have information regarding your share of QBI items, W2 Wages and the unadjusted basis in assets of qualified property, or on a statement attached to the K1. Usually this information appears in box 20 of your K1, under code Z. This information is needed to determine your deduction.

Additional information can be found here: https://www.irs.gov/newsroom/tax-cuts-and-jobs-act-provision-11011-section-199a-qualified-business-income-deduction-faqs

[Edited 5.12.20 | 6am]

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