I have multiple clients with K-1s which have Section 179 depreciation. When entering the K-1 on the 1040, I get the error "Activity name has entries for certain deductions such as section 179, depletion, section 59(e)(2) and other expenses that may be individually limited. For purposes of the qualified business income deduction those expenses are not yet supported. This will be enabled in a subsequent release."
Clients are pushing me for their returns. The calculations seems to be accurate, but the error persists. Any idea when this will be updated so I can inform my clients?
I have had two techs tell me on two different occasions February 12th. What I've been doing is giving the return to the client for review / signature and explaining that while they have signed the return, it won't be submitted until the middle of February do to software issues.
That being said, I'm not pushing the button on February 12th, I don't trust the first round to be 100% at this point. You can go into the K-1 and to section D1 on the personal return and enter this information manually to get the QBI to work. Just double check all the calculations and let the client know that you are stuck with software issues.
No, it does not comfort my clients and I've assured them that if this persists I will find a different software for next year.
Today is 02/21/2020 and yesterday I spent an hour and a half with a representative trying to resolve this issue. It is not an IRS problem. All forms have been released by IRS. It is an internal calculation error in Proseries and it seems they are not able to solve it yet. She talked to the technical department and the only answer I got is that they may come up with a solution today or maybe in a week from now. But I see from other postings that some of you guys were told it can take all the way through the end of the month before they fix this. And a week or two ago some of you were told it will be solved by February 20, which evidently was not. This is absolutely shocking! What do we tell clients who need the tax return now???
I just got off the phone with tech support. The IRS has not released form 8895-A and it should be released on the 20th. So the IRS is what is holding this up. It took me 2 hours to find out this information from a tech rep that the customer service rep should have known, but apparently they did not give this info to the rep. Although the Form 8895-A does have a yellow bar across the top indicating the IRS release date is for 02/20/20, this form was not activated by the program when attempting to deal with the error on the K-1. Therefore, I had no idea this form was needed and was being held up by the IRS. All this after 3 calls the last one took 2 hours.