Sheri1
Level 2

I have two 50/50 shareholders and only one took compensation.  There are no distributions and there is a loss for the year 2019.  What should the K-1's look like for Statement A Qualified Business Income, Box 17, Code V?

Currently it is showing the loss split 50/50, with W-2 wages split 50/50 and the qualified property is split 50/50.  Is this correct?  it is not a specified trade or business.  This is my first S Corp in a few years and I am not sure I am understanding how the shareholder comp should show up for Qualified Business Income as I am reading that it should be excluded from Qualified Business Income but only one shareholder took compensation.  I appreciate your help.

 

   

 

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