jjtrcka221
Level 2
05-01-2024
08:25 PM
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My client has a K-1 showing ordinary income and the statement A QBI pass through attached to the K-1 shows a loss. Does that makes sense? Shouldn't they be the same amounts?
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jjtrcka221
Level 2
05-02-2024
07:46 PM
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Using hypothetical numbers:
K1 box is 1,000 income
Statement A shows - 15,000 loss for QBI.
One of the other partners gets a special allocation for a loss. That loss shows in their box 1 on the k1 also, but their Qbi is the same 15,000 loss as my clients.
It looks like the statement A qbi is being allocated evenly, while the K1 box 1 shows the special allocation.
Shouldn't the statement A Qbi reflect the special allocation also?
