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not sure where to enter her share of the profit and loss.
Not sure where to enter the additional K1 information as no K1 provided
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TIC often do not issue a K-1. Simply input the TP amounts in Schedule C, E or F from the work papers given. You also need to set up depreciation for their undivided ownership percentage.
e.g. "4.8% of 123 Elm Street, Somewhere, TX"
Answers are easy. Questions are hard!
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Thank you for your reply,
Can you confirm, what I do with this information provided?
K-1 Additional Information
Section 199A Income (20,275)
Section 199A W-2 wages 1,877
Section 199a Unadjusted basis 337,105
Section 199A REIT Dividends
Section 199A PTP income
K-1 Line K Information
Qualified Nonrecourse Financing 306,823
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If there's no K-1 where are you getting this add'l K-1 information?
The 199A stuff should flow from your entries on C, E, or F.
The more I know the more I don’t know.
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Yes, and where does the 199A stuff get entered on a return?
The CPA firm provided the 199A stuff along with the financials.
Where do I enter the 199A stuff? That is the question.
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When you enter the business activity on Sch C, E or F and tell the software the business qualifies for the QBI deduction, the software should generate the QBI amounts for Form 8995.
The more I know the more I don’t know.
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"Section 199A REIT Dividends" <== real estate investment trust
"Section 199A PTP income" <== publicly traded partnership
Sure seems like a K-1 and not "share of ownership of property." Are you sure your client knows what they own?
Don't yell at us; we're volunteers
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Here is what I got from the CPA firm to file their tax return.
This is for 5% ownership
Enclosed is your 2018 Tenancy-In-Common tax information
Rental Real Estate Income |
Gross rents 21,456 |
Rental Real Estate Expenses |
Advertising 428 |
Insurance 384 |
Legal and other professional fees 106 |
Interest 7,534 |
Repairs 7,803 |
Taxes 2,660 |
Utilities 2,251 |
Wages and salaries 1,877 |
Depreciation 15,382 |
Amortization 115 |
Administrative & general 733 |
Contracted services 965 |
Management fees 1,462 |
Telephone 34 |
Total Rental Real Esate Expenses |
Loss from Rental Operations |
Other Interest Income |
Interest Income |
41,732 |
(20,275) |
3 |
Net Loss (20,272) |
K-1 Additional Information |
Section 199A Income (20,275) |
Section 199A W-2 wages 1,877 |
Section 199a Unadjusted basis 337,105 |
Section 199A REIT Dividends |
Section 199A PTP income |
K-1 Line K Information |
Qualified Nonrecourse Financing 306,823 |
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It is definitely Tenancy in common.
Just not sure what to do with the K1 items.
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Just because the rental property is owned as TIC (apparently with a lot of other people, if your client has only 5%) doesn't mean that a partnership return is not required. If they're filing a 1065, don't fight the K-1.
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Just fill out the Sch E for the rental property.
If you don't have the assets in your system then you'll need to enter the Unadjusted Basis of the assets for QBI purposes. Otherwise the software will pick up the income/loss and wages.
The more I know the more I don’t know.