Solved

How to calculate section 199A items for box 17, code V?

Forum|Forum|6 years ago
March 6, 2020
7 replies
0 views

I'm trying to determine how to calculate the number to put in box 17 for code V of a Schedule K-1 (Form 1120S). Historically the form mailed to me each year for the K-1 entity has provided a single number. This year the form said for code V: "STMT". The "STMT" sheet provides amounts for Ordinary Income (Loss), Section 179 Deduction, W-2 Wages, and Unadjusted Basis, but no final number to enter. Can someone help me determine how to calculate an appropriate single number, or provide a reference I can use to calculate the appropriate number?

Best answer by JamesG1

With the exception of Section 179 deduction, the items that you mention are all related to the computation of the Qualified Business Income Deduction (QBID). This year, there were changes in the way some of these items were reported on the 1120S K-1.

Below is an overview and also see this IRS publication. But you need to acquire the detailed STMT information from the person who generated the 1120S K-1.

An S-Corporation is required to report to its Shareholder(s) on the Schedule K-1 (Form 1120S) - Shareholder’s Share of Income, Deductions, Credits, etc., the information needed for the shareholder/owner to calculate any QBID. The S-Corporation reports this information on the Schedule K-1 (Form 1120S) in Box 17, Code V through Z. It is this information from Box 17 of the Schedule K-1 (Form 1120S) that should be used by the Shareholder to calculate any 199A Deduction on their individual return. The Box 17 information that is used in the QBID calculation is the following:

Section 199A income –the amount reported is generally defined as the income (or loss) that is related to the corporation's business activities. It should not include investment income, or the reasonable compensation paid to the shareholders for services rendered to the corporation.

Section 199A W-2 Wages – the amount reported is generally the wages paid by the corporation that were reported to the Social Security Administration on a W-2, as well as any elective deferrals and deferred compensation. Rev. Proc. 2019-11 provides additional guidance on how to calculate W-2 wages for purpose of Section 199A.

Section 199A unadjusted basis – the amount reported is the unadjusted basis of qualified property held by the corporation. Qualified property is generally defined as (1) the original cost of assets that were placed in service by the corporation in the past ten years and still used by the corporation and (2) the original cost of assets still being depreciated by the corporation because the recovery period is greater than ten years.

J

JamesG1Answer

With the exception of Section 179 deduction, the items that you mention are all related to the computation of the Qualified Business Income Deduction (QBID). This year, there were changes in the way some of these items were reported on the 1120S K-1.

Below is an overview and also see this IRS publication. But you need to acquire the detailed STMT information from the person who generated the 1120S K-1.

An S-Corporation is required to report to its Shareholder(s) on the Schedule K-1 (Form 1120S) - Shareholder’s Share of Income, Deductions, Credits, etc., the information needed for the shareholder/owner to calculate any QBID. The S-Corporation reports this information on the Schedule K-1 (Form 1120S) in Box 17, Code V through Z. It is this information from Box 17 of the Schedule K-1 (Form 1120S) that should be used by the Shareholder to calculate any 199A Deduction on their individual return. The Box 17 information that is used in the QBID calculation is the following:

Section 199A income –the amount reported is generally defined as the income (or loss) that is related to the corporation's business activities. It should not include investment income, or the reasonable compensation paid to the shareholders for services rendered to the corporation.

Section 199A W-2 Wages – the amount reported is generally the wages paid by the corporation that were reported to the Social Security Administration on a W-2, as well as any elective deferrals and deferred compensation. Rev. Proc. 2019-11 provides additional guidance on how to calculate W-2 wages for purpose of Section 199A.

Section 199A unadjusted basis – the amount reported is the unadjusted basis of qualified property held by the corporation. Qualified property is generally defined as (1) the original cost of assets that were placed in service by the corporation in the past ten years and still used by the corporation and (2) the original cost of assets still being depreciated by the corporation because the recovery period is greater than ten years.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

A

aymeesmiles27

So, does that mean that for box 17 Code V, I would add the section 199A values for: ORDINARY INCOME(LOSS), CHARITABLE CONTRIBUTIONS, W-2 WAGES, UNADJUSTED BASIS? I would use the sum of these values?

J

JamesG1

At the screen Enter box 17 info, select V-Section 199A information in the drop-down menu and the amount for each individual V-Section entry.

The 199A information will also need to be entered at the screen We need some information about your 199A income to compute the QBI deduction.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

K

kzigmant

At the end of K-1 Entry,

D

dyad

Hi! Did you get an answer to your question? I have the exact same question and I do not understand the other replys to your question.

DaveF1006

Here is the order that should appear in your return in Box 20

if there is a Z, select Z in the drop down and leave the $ blank.
Next screen asks about the risk. indicate you are at risk
Then there will be a screen that appears that says, We see that you have 199A income.Here you have three choices to make. pick one that is applicable to you.
Next screen will say we need some information about your 199A income. Here you will see those entries appear with check boxes along side them. When you select those boxes, drop down will appear and you can enter the $ amounts for each of those entries.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

L

Luke Knight

When I try to inout the code next to Box 17 there is no option for code v. How can I choose code V?

S

sykong

I enter net income in box 17 but it didn't solve the problem

K

kksea

do i enter the sum of 199a statement in box 17 code v? i have four items from the statement, not sure which amount to enter here?

J

JamesG1

At the screen Enter Box 17 Info, enter the drop-down 'V-Section 199A Information'. No amount need be entered.

On your 199A statement, I suspect that you have income, W-2 wages and UBIA. What is the fourth amount? Do you find it listed at the screen We need some information about your 199A income?

At the screen Enter Box 17 Info, select V-Section 199A information. Leave Amount empty. Click Continue. This tells the software that Section 199A information will need to be entered for the income previously reported.
At the screen We see you have Section 199A income, select the appropriate income description. Click How would I know this? for more information. Click Continue.
At the screen We need some information about your 199A income, select the appropriate income description and amount from the 199A detail provided with the K-1. In many cases, you will also select and enter values for W-2 wages and UBIA of qualified property. Click Continue.

@kksea

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

DaveF1006

Yes, here is how you will report code V on line 17 on the 1120S form:

There is information required in this section that is enclosed in a supplementary statement that came with your K1.
When you enter your K-1 into your return, you will select Box 17as a box that has information in it.
After entering the information that is on the form, you will eventually be given the opportunity to work on Box 17, there will be a drop-down in the Box. Here you will select Code V,, section 199 information. Leave the amount blank as Turbo Tax will fill that information in for you. Press continue at the bottom.
The next few screens will ask for answers that you will provide to the program that is on that supplementary statement.

@USER987456

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

S

sftech

For those that are stuck with:
A K-1 with a Loss

A Box 17 with Code V and STMT

An error message "There is no income on statement A"

The answer!
You need to fill in the information on statement A, which is actually page 6 of your K-1 in TT.

To get there, go to forms mode and select the relevant K-1
Scroll down about halfway to "Section D1"
It's the "Statement A!"

Enter the information from your K-1 Statement A here, and that should get you out of TT error check jail!

Good Luck!

PatriciaV

Employee

The solution using Forms Mode is available only to those using TurboTax for desktop. When using TurboTax Online, you need to follow the K-1 interview to the questions regarding Section 199A as follows:

After entering the info from Schedule K-1, continue to the page Let’s check for uncommon adjustments. Enter any applicable Section 199A Statement amounts. These screens, to the extent applicable to your Section 199A statement, must be completed for your K-1 QBI information to be correctly entered into TurboTax

If your section 199A Statement has amounts related to the W-2 wages of your business or UBIA of qualified property, an amount must be entered or no QBI deduction will populate on your tax return. If left blank or zero is entered, no deduction is allowed.

@sftech

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"