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QBI Only component showing up on Sche E as if owned by the Taxpayer

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Level 1
last updated ‎February 24, 2020 3:20 PM

Has anyone run into a QBI only component entity having to be entered on a separate K-1 worksheet, therefore now being shown on Sch E pg 2 as if the Taxpayer owns this K1.


In reality another flow thru entity reported by the taxpayer actually owns the LLC, so I do not believe it should be shown on Sch E Pg 2 at all.

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Level 12
last updated ‎February 24, 2020 3:20 PM

This has been asked Twice:

https://proconnect.intuit.com/community/proconnect-tax-online-discussions/discussion/qbi-only-entity...

 

Once for Online and once for Pro Series. It helps to ask Once, for the program you are using. Thanks.

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Level 1
last updated ‎February 24, 2020 3:20 PM

But never answered....

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Level 12
last updated ‎February 24, 2020 3:20 PM

"But never answered...."

 

@dusty10c_cpa 

You have confused your Peer users who would try to help, if you stated which program you are using.

You posted this in Two Places. Are you trying to do this in Both Programs? Or, did you want an actual answer to a specific question?

Because it's not nice to confuse your peer users. They are a bit busy, this time of year.

 

This is not Intuit Customer Support. You can call them, if you would like, instead of trying to get help from your peer users.

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Highlighted
Level 1
last updated ‎February 24, 2020 3:20 PM

ProSeries....I put it in the ProConnect board in error....

 

 

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Level 12
last updated ‎February 24, 2020 3:20 PM

Let's try a shout-out or 2 or 3:

@Just-Lisa-Now- 

@IRonMaN 

@sjrcpa 

 

Perhaps you can help this person? Thanks.

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Level 15
Level 15
last updated ‎February 24, 2020 3:20 PM

@dusty10c_cpa wrote:

Has anyone run into a QBI only component entity having to be entered on a separate K-1 worksheet, therefore now being shown on Sch E pg 2 as if the Taxpayer owns this K1.


In reality another flow thru entity reported by the taxpayer actually owns the LLC, so I do not believe it should be shown on Sch E Pg 2 at all.


 

I havent had anyone with a K-1 come in yet, but Im not sure I actually understand the question anyhow.

You have a K-1 of some flavor, but a different entity actually owns the LLC?  If the taxpayer doesnt town it, who does?  What SSN is on the K-1?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Highlighted
Level 1
last updated ‎February 24, 2020 3:20 PM

When a K-1 has two components for QBI purposes, Proseries wants you to add the 2nd Component of QBI on a separate K-1 entry worksheet.

Company A (QBI Component1) owns Company B (QBI component2).

Company A's K1 includes the Company B income for Sch E tax reporting purposes.

To calculate the QBI properly Proseries wants Company B's QBI component income separately entered for QBI purposes (ONLY) via a K-1 entry worksheet. 

Company A is reporting all of the taxable income for both entities on Sch E page 2.

The problem is the name and ID# for Company B is also being presented on Sch E pg 2 which I believe will be misleading and lead the IRS to believe that Company B should be reported by the taxpayer, which is not correct.

Company B is NOT owned by the taxpayer only Company A is owned by the taxpayer.

Hope this helps to see the issue...I was hoping there would be someway to mark the Company B k1 worksheet as ONLY reporting for QBI purposes so that the name and ID# would not show up on Sch E pg 2 at all.

 

 

 

 

 

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