A number of users have posted questions in the Community over the last few weeks about Intuit's tax products not reducing QBI reported as Code V on Line 17 of K-1 by the amount of §179 allowed on the shareholder's return with respect to that s corp.

We were told that Intuit's position is that QBI reportable by s corp should be net of §179 and, by the same token, shareholders should not reduce their QBI again based on §179 allowed with respect to that entity. As a compromise, Intuit has since provided (1) an option for 1120S Sch K-1 to not reduce QBI (Code V) by §179 (from Line 11) and (2) an override on F.1040 to indicate the amount of §179 not already included in Code V so that §179 allowed at the individual level will offset QBI from the respective s corp.

We believe the tax positions taken at both the RPE and individual levels by Intuit are incorrect, have had protracted technical discussions with Intuit both on and offline, provided the citations and explanations Intuit requested, and submitted a sample return for your review. We only asked that you respond with the relevant citations and explanation if you believe our understanding or interpretation of the law is incorrect but have not received an update after weeks of discussions and escalation by the moderators.

There are a number of members in the Community who have returns waiting to be finalized, pending a resolution from Intuit. Could Jim and Mike please give us a definitive update on this?

Thanks!

https://accountants-community.intuit.com/questions/1805981-problems-with-the-calc-of-qbi-and-section...