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DPAD on a partnership return

gabletax
Level 4

Farm partnership received Form 1099-PATR with an amount in Box 6 DPAD. In ProSeries, where is this entered on Form 1065 or its attachments so it gets passed through to the partners?

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3 Comments 3
meoleson
Level 5

Google is your friend and may be faster.  I believe it is listed on K-1 line 13 and then passed through to the individual form 8903.  Partnership and Sub S Corps do not have a form 8903.

gabletax
Level 4

Ah, yes, Google. It offers up Paul Neiffer, the farmer-CPA from Washington state who is well-versed in all things DPAD and 199a and 1099-PATR. He blogged this on January 29, 2020.

https://blogs.claconnect.com/agribusiness/form-1099-patr-part-2/

First, for Form 1065 and 1120-S, the DPAD reported in Box 6 will be a separately reported item on Schedule k-1. There is no QBI form for partnership and S corporation returns. Instead, you are required to report all items related to QBI on a statement attached to Schedule k-1 including the DPAD from the cooperative. You may also want to state which cooperative provided the DPAD since the individual Form 8995-A does request inputting the name of the cooperative.

Terry53029
Level 14
Level 14

Box 6. Shows the deduction amount you may take based on your portion of patronage dividends or per-unit retain allocations (boxes 1 and 3) attributable to qualified production activities income. To claim the deduction amount, this amount must have been designated in a written notice sent to you from the cooperative within the payment period under section 1382(d).

on a 1065, put the total on 199A statement A summary under other deductions, and each partner K1 statement A other deductions. Put the amount of 1099 divided by number of partners