fred7777
Level 2
12-07-2019
06:00 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
A client has three different eligible Section 199A entities. All three are family owned and satisfy all the aggregation rules and taxable income QBI limitations. All three are real estate rental businesses. Two of the Sub S Corps have "Net Rental Real Estate Losses" (combined Losses are $8,000) reported on Line 2 of their Schedule K-1 ... the third company reports a K-1 Line 2 profit of $2,000. Thus, the net total of all three entities is a $6,000 loss. I entered the appropriate Code "V" in Schedule K -Box 17 - "Section 199A Income", but the "Qualified Business Income Deduction Simplified Worksheet" aggregates the three income or (loss) amounts on the worksheet's Line 2.
- 1. Is this the correct reporting?
- If no, should I remove the Code V from the two entities reporting losses so that just the profit reporting entity is reported?
- Can I override the Section 199A designation checkboxes for the two profitable entities?
Best Answer Click here
Labels