My client who is the sole owner of an S corporation received a Schedule K-1 for 2019 that shows an ordinary loss in Box 1.

On Box 17 a code V is entered and an attached statement shows that loss. In addition it shows an amount for W-2 Wages and  an amount for Unadjusted Basis Immediately After Acquisition.

When I enter these into my ProSeries Basic program, there is no change to the results.

I assume the reason is due to the fact that my client had a loss for the year and therefore there is no Qualified Business Income (QBI) deduction.

Was it necessary to include this statement as part of the Schedule K--1?