PhoebeRoberts
Level 11
Level 11

Because the partner needs to meet criteria independently (they have to have been in the partnership long enough, don't remember exact details because it's been a while), I've always seen the details of the QSB transaction included as a footnote on the K-1. 1040 preparer manually backs the QSB stock out of the K-1 reported gain, and enters a second line-item with the QSB stock detail.