How to input Schedule K-1 if boxes 1 and 2 have values and different entities in Schedule K-1, Box 20, Code z?

Forum|Forum|3 years ago
April 6, 2023
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I have a K-1 that have values in boxes 1, 2, 17, 19, 20. I read that I need to need to split this K for box 1 and 2. But I also have 3 entities in Statement A—QBI Pass-through Entity Reporting (Schedule K-1, Box 20, Code Z). One is the "main" entity issuing the K-1 and another 2 entities with no EIN number that have rental income (loss). I'm a bit lost in how many K-1 I need to break this into? And where should I report the 19 distributions.

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Best answer by AliciaP1

If your Schedule K-1 has multiple boxes completed (1 and 2 and/or 3) you will complete the business column of your Section 199A Statement with your box 1 income and then you will enter another K-1 with the other box (2 or 3) and the pass-through entity Section 199A information. Once you have entered the first K-1 and completed the whole interview, you will be returned to the Tell Us About Your Schedules K-1 screen where you can click Update for the type of K-1 you have and on the Summary screen Add another K-1. Only enter the other income box (2 or 3) and the box 20 or 17 Section 199A information on the second K-1 and do not enter any other box information on this additional K-1.

@Gustavo B

RobertB4444

You only need to split this into two different K-1's. The first K-1 uses the same information as on your form and then only needs the information that is in box 1. The second uses the same information as on your form and has all of the rest of the information. The rental income from the other entities listed on your statement should be aggregated on the original K-1 form in box 2 so you are reporting total rental income (loss) by entering that number.

@Gustavo B

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Gustavo BAuthor

Should the values in Statement A—QBI Pass-through Entity Reporting (Schedule K-1, Box 20, Code Z), line Rental income (loss) add up to the box 2? Because in my form, it doesn't.

AliciaP1

Not necessarily, not all income reported as rental income is QBI income. There may be some income that doesn't qualify based on how the business runs the rental creating the income or based on your ownership structure of the property. See Can I get the QBI deduction for more information.

@Gustavo B

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