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Reporting the 2018 Domestic Production Activity Deduction from a specified cooperative

SOLVEDby IntuitLacerte Tax20Updated July 12, 2022

For tax year 2018, cooperatives with a fiscal year can receive the Domestic Production Activity Deduction (DPAD) passed through from a fiscal year 2017 cooperative, as well as the DPAD passed through from a fiscal year 2018 cooperative.

These two amounts are reported differently on Form 1040. Because of this, Lacerte includes two different input fields for these items within the Schedule C activity and Schedule F activity input screens.

 

These additional input fields were introduced with Version 39.0214. If you don't see these input fields, you need to update the program.

Click the applicable screen below for more information.

  • DPAD from specified cooperative for fiscal year 2017 (code 454) - This amount will flow to Form 8903, line 23 to be included in the total on line 25. This amount then flows to Schedule 1, line 36 along with a statement which indicates "DPAD - Form 8903."
  • Portion of business allocable to DPAD received from a cooperative for fiscal year 2017 (xx.xx) (code 513) - Because the income allocable to the fiscal year 2017 cooperative isn't eligible for QBI, this field can be used to indicate the percentage of the Schedule F income allocable to the fiscal year 2017 DPAD. The program will reduce your QBI by this percentage.
    • Other methods can be used to divide this amount up. If you choose to use a method other than this field, the Qualified business income (QBI) (loss) [O] (code 445) must be used, and a supporting statement can be created using Screen 47, Notes.
  • DPAD received from a specified cooperative for fiscal year 2018 (code 315) - This amount will flow to the QBI worksheet. From there, it'll flow to Form 1040, line 10 with a statement which indicates "DPAD 199A(g)."

2018-Lacerte-Form-Income-screen-DPAD.png

  • DPAD from specified cooperative for fiscal year 2017 (code 456) - This amount will flow to Form 8903, line 23 to be included in the total on line 25. This amount then flows to Schedule 1, line 36 along with a statement which indicates "DPAD - Form 8903."
  • Portion of business allocable to DPAD received from a cooperative for fiscal year 2017 (xx.xx) (code 513) - Because the income allocable to the fiscal year 2017 cooperative isn't eligible for QBI, this field can be used to indicate the percentage of the Schedule C income allocable to the fiscal year 2017 DPAD. The program will reduce your QBI by this percentage.
    • Other methods can be used to divide this amount up. If you choose to use a method other than this field, the Qualified business income (QBI) (loss) [O] (code 445) must be used, and a supporting statement can be created using Screen 47, Notes.
  • DPAD received from a specified cooperative for fiscal year 2018 (code 315) - This amount will flow to the QBI worksheet. From there, it'll flow to Form 1040, line 10 with a statement which indicates "DPAD 199A(g)."

Lacerte-business-income-screen-DPAD.png

Line 20 - Other - Section 199A (20Z - 20AB):

  • (13W) DPAD received from specified cooperative (code 1164)
  • (20AH) DPAD received from a specified cooperative (199A(g)(2)) (code 1165)

Lacerte-section-199a-partnership-DPAD.png

Line 17 - Other Information - Section 199A (17V - 17X):

  • (12S) DPAD received from a specified cooperative (code 1164)
  • (17AC) DPAD received from a specified cooperative (199A(g)(2)) (code 1165)

Lacerte-section-199a-corporation-dpad.png

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