Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

How to enter Section 754 Depreciation form K-1?

Highlighted
Level 2
 
Labels (1)
0 Cheers
1 Solution

Accepted Solutions
Highlighted
Level 15

Are you referring to how this should be entered on a 1040?  If so, you would expect the adjustment to have already been applied against that partner's income on the K-1.  On that basis, you will not need to enter that "again" on the 1040.  You may like to verify whether the adjustment was indeed not made on the K-1 against the income of that partner in the first instance.

---------------------------------------------------------------------------------
Still an AllStar

View solution in original post

0 Cheers
3 Replies 3
Highlighted
Level 15

Are you referring to how this should be entered on a 1040?  If so, you would expect the adjustment to have already been applied against that partner's income on the K-1.  On that basis, you will not need to enter that "again" on the 1040.  You may like to verify whether the adjustment was indeed not made on the K-1 against the income of that partner in the first instance.

---------------------------------------------------------------------------------
Still an AllStar

View solution in original post

0 Cheers
Highlighted
Level 2
Thank you.   The footnotes actually indicate that QBI does not include these amounts.  
0 Cheers
Highlighted
Level 15
You may like to double check why it's not included in the QBI because there is no exclusion for §754 adjustment under §199A AFAIK.  The footnote may be referring to UBIA because the operative section is §743 instead of §754.  Either way, no separate adjustment would normally be required on the individual return.
---------------------------------------------------------------------------------
Still an AllStar
0 Cheers