199A Box Z

Forum|Forum|3 years ago
March 16, 2023
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I have an LLC that holds a few rental houses. It only has losses. I do the taxes on using TurboTax Business. It issues me K-1's that have in Box 20 a code Z and note "STMT." There is no statement labeled "Z". When I do my personal taxes and input this K-1, I don't know what number to put for code Z. When I go to file my personal federal tax return electronically, Turbo Tax won't do it until I enter a proper number for code Z. I have tried zero and other numbers that might apply, but nothing works. I have reviewed all the LLC tax forms and there is no help. Last year I had to print the tax return and file by mail to get around this. Can anyone tell me where to find or how to calculate the number that should go in Z?

Best answer by Anonymous_

See https://www.irs.gov/instructions/i1065#en_US_2021_publink1000100887

Section 199A information (code Z).

The qualified business income (QBI) deduction may be taken by eligible taxpayers, including individuals and some trusts and estates. The deduction is determined at the partner level. Partnerships are required to report information necessary for their partners to figure the deduction. Use code Z with an asterisk (Z*) on each partner’s Schedule K-1 and enter “STMT” in the entry space to indicate that the information is provided on an attached statement that separately identifies the partner’s distributive share of: