I'm not quite sure what you mean by "bifurcating" position. Given that there is inconsistency within industry and even within the IRS itself about how to account for Section 179 and other separately stated expenses in the QBI income amount reported in Box 17 of SCorp K1s (and Box 20 of partnership K1s), we have opted to support both approaches. If we had a magic wand we could wave to get everybody on the same page, we absolutely would. It would make our jobs a lot easier.

But the reality is individuals who receive K1s may receive K1s that do or do not include separately stated items in the QBI income, depending on decisions made by the K1 preparer or possibly the K1s software provider (not all software supports both possibilities), so we accomodate both possibilities. At the entity level, some preparers want to include these separately stated items in the QBI figure, and some prefer to report them in a separate statement. The leading tax industry tax minds are divided on this issue. The IRS has opted not to provide clear instructions on this issue given a lack of consensus among senior IRS officials.

This is the reality, and this is why we support both positions in our software.