Question

PTP K-1 box 20 code AH, And Form 8995A

Forum|Forum|4 years ago
March 15, 2022
1 reply
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So, I received two k-1s from PTPs.

Box 1: 1

Box19: code A: 4

Box 20: code V=1, 20Z=1, 20AE=2, 20AG=7

20AH1(Gross receipts for Unrelated business taxable income purpose)=7

20AH2(Gross deductions for Unrelated business taxable income purpose)=9

20AH3(Federal Reg Bonus Depreciation Adjustment for non-conforming state in ordinary business income)=1

I added all the codes and values(including AH codes) as discussed in How do I enter each K-1 Line 20 amounts, eg 20AD, 20AE, 20AH1, 20AH2 and 20AH3? (intuit.com)

Form 8995A(1) has these values, line 28=16, line 29=0. line 39=3 and value from line 39 went to 1040 line 13.

Questions:

1. So PTP gave me QBI deduction even though my total taxable income was more than QBI limits. this is may be some special rules apply to PTP?

2. When I added PTP K-1 in TT deluxe mac download, did it also took care of the income from PTP? it seems so as k-1 box 1 has positive value. I should not need schedule C. correct understanding?

3. This K-1 is from taxable account, do I need to add unrelated business taxable income and deductions somewhere else in the tax returns?

AliciaP1

I'll answer according to your question numbers:

No, your K-1 will report Qualified Business Income regardless of whether you personally qualify for the deduction. The business doesn't have access to your personal situation. Just enter the K-1 with the Section 199A codes as reported to you and TurboTax will calculate your deduction (or deny it if your taxable income is too high)
Correct - the K-1 is the form you enter to report the income from the PTP
No, if you follow the step-by-step process to enter the K-1 and enter all codes and amounts shown on it and you will have reported all income appropriately

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