You performed more than 750 hours of services in real property trades or businesses in which you materially participated. Your 2022 taxable income before the QBI deduction is equal to or less than $170,050 ($340,100 if married filing jointly). Unused investment credit from the rehabilitation credit or energy credit allocated from cooperatives (Form 3468, line 13). Qualified plug-in electric drive motor vehicle credit (including qualified two-wheeled plug-in electric vehicles and new clean vehicles) (Form 8936). Credits that may be reported with code P include the following. If your MAGI (defined below) is $100,000 or less ($50,000 or less if married filing separately), your loss is deductible up to the maximum special allowance referred to in the preceding paragraph. scroll down to the D2 section of the k-1. Although the partnership is reporting the beginning and ending balances on an aggregate net basis, it is generally required to keep records of this information on a property-by-property basis. The partnership will report your share of qualified rehabilitation expenditures and other information you need to complete Form 3468 for property not related to rental real estate activities in box 20 using code D. Your share of qualified rehabilitation expenditures related to rental real estate activities is reported in box 15 using code E. See the Instructions for Form 3468 for details. If there is more than one type of expenditure, the amount of each type will also be listed. If you believe the partnership has made an error on your Schedule K-1, notify the partnership and ask for a corrected Schedule K-1. This is the QBI information (Qualified Business Income - Section 199A information). The instructions and screenshotsfor entering a K-1 with line 20, code Z earlier in this "thread" are for the TurboTax individual tax return (Form 1040) products. This amount is your share of the partnership's depletion adjustment. When determining QBI or qualified PTP income, you must include only those items that are qualified items of income, gain, deduction, and loss included or allowed in determining taxable income for the tax year. Rul. Generally, amounts on this line are not passive income, and you should report them on Schedule E (Form 1040), line 28, column (k) (for example, guaranteed payments for personal services). Report this amount on Form 4952, line 4a. Amounts borrowed for use in the activity from a person who has an interest in the activity, other than as a creditor, or who is related, under section 465(b)(3), to a person (other than you) having such an interest. The maximum special allowance that single individuals and married individuals filing a joint return can qualify for is $25,000. A partner is required to notify the partnership of its tax-exempt status. Additional information can found in the Partner's instructions . Use Form 8995, Qualified Business Income Deduction Simplified Computation, if all of the following apply. The partnership will report any information you need to figure the interest due or to be refunded under the look-back method of section 460(b)(2) on certain long-term contracts. Did your problem self correct? Box 20Code AB is used for section 751 gain or loss from the sale of a partnership interest. Include investment income and expenses from other sources to figure how much of your total investment interest is deductible. For those informational items that cant be reported as a single dollar amount, the partnership will enter an asterisk (*) in the left column and enter STMT in the dollar amount entry space to indicate the information is provided on an attached statement. Employee retention credit for employers affected by qualified disasters (Form 5884-A). In addition, the partnership should report the adjusted basis and FMV of each property distributed. If you and the partnership are eligible small businesses, report the credit on line 4i. Penalty on early withdrawal of savings. Go to Special Allocations > Special Allocations worksheet. Report on your return, as an item of information, your share of the tax-exempt interest received or accrued by the partnership during the year. A tax benefit item is an amount you deducted in a prior tax year that reduced your income tax. See Regulations section 1.1254-5 for details. If the partnership is reporting expenditures from more than one activity, the attached statement will separately identify the expenditures from each activity. Capital Gains. The partnership will report your distributive share of certain cash contributions under section 2205(a) of the Coronavirus Aid, Relief, and Economic Security Act. See, Report this amount on Form 6478, Biofuel Producer Credit, line 3, or Form 3800, Part III (see, Report this amount on Form 5884, Work Opportunity Credit, line 3, or Form 3800, Part III (see, Report this amount on Form 8826, Disabled Access Credit, line 7, or Form 3800, Part III (see, Report this amount on Form 8844, Empowerment Zone Employment Credit, line 3, or Form 3800, Part III (see, Report this amount on Form 6765, Credit for Increasing Research Activities, line 37; or on Form 3800, Part III (see, Report this amount on Form 8846, Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips, line 5; or Form 3800, Part III, line 4f (see, On a statement attached to Schedule K-1, the partnership will identify the type of credit and any other information you need to figure credits other than those reported with codes A through O. The partnership should give you a description and the amount of your share for each of these items. Passive activities do not include the following. This is your share of gross income from the property, share of production for the tax year, and other information needed to figure your depletion deduction for oil and gas wells. Scroll to the section where it mentions XXX has rental income or loss. The boxes are locked and I can't add the loss in. This special allowance is an exception to the general rule disallowing losses in excess of income from passive activities. Unadjusted basis immediately after acquisition (UBIA) of qualified property. Distribution subject to section 737. 526, Charitable Contributions, and the Instructions for Schedule A (Form 1040). The deduction is limited to 20% of taxable income, less net capital gains. See the Instructions for Form 8995 or the Instructions for Form 8995-A, as applicable. Corporate partners are not eligible for the section 1202 exclusion. If you didn't materially participate in the oil or gas activity, this interest is investment interest expense and should be reported on Form 4952. Report your share of this unrecaptured gain on the Unrecaptured Section 1250 Gain WorksheetLine 19 in the Instructions for Schedule D (Form 1040) as follows. Use the information provided by your partnership to complete the appropriate form listed above. Hybrid dividends of tiered corporations under section 245A(e)(2). Accordingly, report the amount from line 7, above, on Form 4797 or Form 8949 and the Schedule D of your tax return. Mine rescue team training credit (Form 8923). Attach a statement to the Schedule K-1 identifying the dividends included in box 6a or 6b that are: Eligible for the deduction for dividends received under section 243(a), (b), or (c); Eligible for the deduction for dividends received under section 245; Eligible for the deduction for dividends received under section 245A; and. An applicable partnership interest is an interest in a partnership that is transferred to or held by a taxpayer, directly or indirectly, in connection with the performance of substantial services by the taxpayer or any other related person, in an applicable trade or business. Code B. The partnership will report any information you need to figure the interest due under section 1260(b). If the partnership did not check the box, the partnership attached a statement to the Schedule K-1 (or issued a statement prior to furnishing the Schedule K-1) notifying the partner that the partner will not receive Schedule K-3 from the partnership unless the partner requests the schedule. Report box 1 income (loss) from partnership trade or business activities in which you materially participated on Schedule E (Form 1040), line 28, column (i) or (k). The partnership will attach a statement that provides a description of the property, your share of the amount realized from the disposition, your share of the partnership's adjusted basis in the property (for other than oil or gas properties), and your share of the total intangible drilling costs, development costs, and mining exploration costs (section 59(e) expenditures) passed through for the property. For all other partners, the partnership will enter the partner's employer identification number (EIN). Dividend equivalents are not reported on Form 1040 or 1040-SR. Codes T through U. Your participation in the activity for the tax year constituted substantially all the participation in the activity of all individuals (including individuals who are not owners of interests in the activity). If the partnership reported an amount in box 20, code V, the partnership also reported an IRA partner's unique EIN in box 20, code AH. You may be treated as actively participating if you participated, for example, in making management decisions or arranging for others to provide services (such as repairs) in a significant and bona fide sense. The ordinary dividends amount in box 6a does not include the amount of dividend equivalents. Report a loss on Form 4797, Part I. Are we talking about the same thing? The partnership uses Schedule K-1 to report your share of the partnership's income, deductions, credits, etc. Last year when I had "Z" entered on Line 14, there was a Schedule K-1 - 199A Supplement (Line 14) created along with the K-! Code C. Section 1256 contracts and straddles. Report these taxes on Schedule 3 (Form 1040), line 13a. Generally, you should report these amounts on Schedule A (Form 1040), line 16. You materially participated in the activity for any 5 tax years (whether or not consecutive) during the 10 tax years that immediately precede the tax year. A significant participation activity is any trade or business activity in which you participated for more than 100 hours during the year and in which you didn't materially participate under any of the material participation tests (other than this test). Box 20: Other information. See the instructions for Form 4952, line 4g, for important information on making this election. Any deficiency that results from making the amounts consistent may be assessed immediately. I just updated my software today to see if it fixed the problem, but it is not resolved. If you are an individual, report the interest on Schedule 2 (Form 1040), line 15. If you are an individual (either a general partner or a limited partner who owned a general partnership interest at all times during the tax year), you materially participated in an activity only if one or more of the following apply. If you are filing a 2022 Form 1040 or 1040-SR, use the following instructions to determine where to report a box 2 amount. If the amount of interest income included in box 5 includes interest from the credit for holders of clean renewable energy bonds, the partnership will attach a statement to Schedule K-1 showing your share of interest income from these credits. If you have unallowed losses from more than one activity of the PTP or from the same activity of the PTP that must be reported on different forms, you must allocate the unallowed losses on a pro rata basis to figure the amount allowed from each activity or on each form. On the form or schedule you normally use, report the net gain portion as nonpassive income and the remaining income and the total losses as passive income and loss. If it reports the other two types of unrecaptured gain, it will provide an attached statement that shows the amount for each type of unrecaptured section 1250 gain. If the credits are from more than one activity, the partnership will identify the credits from each activity on an attached statement. The amounts reported to you reflect your distributive share of items from the partnerships trade(s), business(es), or aggregation(s), and may include items that are not includible in your calculation of the QBI deduction. Codes AA through AH reflect your share of the partnership's net section 199A deduction. If the nominee intentionally disregards the requirement to report correct information, each $290 penalty increases to $580 or, if greater, 10% of the aggregate amount of items required to be reported, and there is no limit to the amount of the penalty. The partnership will separately report your share of all payments received for the property in future tax years. Section 199A(g) deduction from specified cooperatives. You actively participated in the partnership rental real estate activities. See, Section 1061 recharacterizes certain long-term capital gains of a partner that holds one or more applicable partnership interests as short-term capital gains. Partnerships with current year gross receipts (defined in Regulations section 1.448-1T(f)(2)(iv)) greater than $5 million are required to report to their partners their distributive share of current year gross receipts, as well as their distributive share of gross receipts for the 3 immediately preceding tax years. Qualified nonrecourse financing generally includes financing for which no one is personally liable for repayment that is borrowed for use in an activity of holding real property and that is loaned or guaranteed by a federal, state, or local government or borrowed from a qualified person. The activity was a personal service activity and you materially participated in the activity for any 3 tax years (whether or not consecutive) preceding the tax year. Proc. Additionally, if the partnership has a distributive share of a lower-tier partnership's section 951(a) income inclusions, the partnership will use this code to report your share of that inclusion. 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