Level 1

PTPs & QBI - An individual receives K-1s from 10 PTPs for 2018. In Box 20AD, some K-1s have income and some have losses. Lacerte is currently netting all the income and losses together to arrive at qualified PTP income or loss for purposes of the worksheet (line 28) that supports the Form 1040, line 9 QBI deduction. Some of the losses are disallowed due to Sec. 469 limitation and are excluded from the individual's taxable income for 2018. The disallowed losses should not be included in QBI income for 2018 per Reg. Sec. 1.199A-3(c)(3) and Publication 535. Additionally, Lacerte does not track the $10,000 loss as a carryforward to a future year.

Labels (1)
0 Cheers