arin
Level 2
12-07-2019
04:08 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Best Answer Click here
Labels
PhoebeRoberts
Level 11
12-07-2019
04:08 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Yes. But the QBI loss, like the PTP loss, is suspended at the 1040 level, not the 1065 level.
arin
Level 2
12-07-2019
04:08 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Agreed, but Lacerte isn't suspending it. I called and they told me Lacerte is correct, which seems at odds with the Regs. Do I just need to track this seperately and override the Lacerte input?
sjrcpa
Level 15
12-07-2019
04:08 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Yes keep track separately and override Lacerte.
Ex-AllStar
Ex-AllStar
PhoebeRoberts
Level 11
12-07-2019
04:08 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Enter the PTP as a separate K-1.
arin
Level 2
12-07-2019
04:08 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
How would entering it seperately work? I see how that works for ordinary suspended losses, but my PTP loss gets entered in line 20AD and isn't getting suspended like the ordinary income is. In fact, when I enter a seperate PTP K-1, Lacerte isn't netting out the income due to suspension like it does with non-PTP losses.
PhoebeRoberts
Level 11
12-07-2019
04:08 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
20AD is the PTP *QBI* loss. The PTP loss that goes into the income calculation is entirely separate. Your K-1 should disclose the PTP portion of the K-1 income and deduction items separately. So if Box 1 is $500, made up of a $50 PTP loss and $550 of non-PTP income, you enter them as if they were two different K-1s.
You may need to request additional information from the K-1 issuer, if they don't have the PTP separately stated.
You may need to request additional information from the K-1 issuer, if they don't have the PTP separately stated.
arin
Level 2
12-07-2019
04:08 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Yes, that makes sense for the income. My question is about suspending QBI PTP loss. My understanding of the regs is that you won't recognize the QBI PTP loss until the associated ordinary loss is also recognized. I'm trying to figure out if Lacerte will suspend/track that or if I have to do that manually off-line and then only enter into 20AD the portion that should be recognized for QBI purposes.
PhoebeRoberts
Level 11
12-07-2019
04:08 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Ah, I see what you're saying - even entering it separately, Lacerte is allowing the PTP QBI loss and suspending the PTP ordinary loss. (And if you have an overall loss, there's not even a worksheet, worthless Lacerte.)
Yeah, Lacerte is doing it wrong. You have to override. Sorry!
Yeah, Lacerte is doing it wrong. You have to override. Sorry!
arin
Level 2
12-07-2019
04:08 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Thank you for looking at this. It's very helpful to have confirmation that I'm interpreting the K-1 and QBI rules correctly. Good luck with the rest of tax season!