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Form 1065 qbi deduction on form 1065 do we minus out the income on 199A activity worksheet for rental properties.

grabowskiassoc
Level 1
 
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IRonMaN
Level 15

I think those minus calculations take place on the 1040.


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7 Replies 7
IRonMaN
Level 15

I think those minus calculations take place on the 1040.


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grabowskiassoc
Level 1
But if you are not preparing the personal returns how would you know that this is rental property from the K1?
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IRonMaN
Level 15
If the K-1 is done properly, it will say that.

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Just-Lisa-Now-
Level 15
Level 15
:+1::+1:

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mikeintexas
Level 1
Use the 199A Worksheet by Activity to minus out rentals that you know are not QBI.  While attachments to the K-1 will identify it as a rental activity, some rentals will be QBI and some will not.  If it isn't QBI, no need to flow it through to the partners saying that it is QBI.
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MrMojo
Level 3
@IRonMaN

'Tax Cuts and Jobs Act, Provision 11011 Section 199A - Qualified Business Income Deduction FAQs | Internal Revenue Service'

"S corporations and partnerships are generally not taxpayers and cannot take the deduction
themselves. However, all S corporations and partnerships report each shareholder’s or partner’s
share of QBI, W-2 wages, UBIA of qualified property, qualified REIT dividends and qualified PTP
income on Schedule K-1 so the "shareholders or partners may determine their deduction"."

The K-1 'done properly' is Incorrect.
It's the K-1 recipient that decides whether or not QBID applies at their level.
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TaxMonkey
Level 8
Their share of QBI could still be zero.  
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