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April 21, 2021
Question

199A income error from investment property K-1

  • April 21, 2021
  • 1 reply
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When trying to e-file, I'm receiving an error of "Sch K-1 Wks-Partnerships (Entity) : Box 20 Code Z has been selected but no Section 199A income has been entered on Statement A" on each of my K-1s. These are syndicated rental properties (each one separate LLC) that I bought into a few years ago on the LP side and don't materially participate in. I've triple check and made sure TT knows that.

 

When I click next, it's wanting me to fill in the QBI Passive Op Loss for one of them, and then just gives the above error for the other two. The statement A on each of them show the rental income loss, and the UBIA of qualified property amount. When filling out the information in the "We need some information about your199A income" section, there is no Rental income (loss) portion, which is how it shows on the K-1. Which makes sense because I don't materially participate in it, but TT knows that. Any ideas?

    1 reply

    HarruinAuthor
    April 22, 2021

    I found the answer. I had to check the box "Business Income" which then had the sub category of Rental Income.