Level 2

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QBI Deduuction for Complex Trust

Forum|Forum|6 years ago
December 7, 2019
8 replies
59 views

Trust return received a K-1 from a trade or business partnership (not a SSTB). I have filled in the QBI numbers on line 20 in screen 25 but no amount shows up in the return? Is the information supposed to be somewhere else for calculation purposes? Is the QBI calculation functioning for Trusts?

Lacerte Tax

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Best answer by George4Tacks

I just did a dummy return and I see the QBI showing up on line 15a, with a worksheet.

Possibly your return has too much income, or too much being distributed. I have no real experience other than having just played with a dummy return. I did find this enlightening article https://www.thetaxadviser.com/issues/2018/dec/claiming-qbi-deduction-trusts.html

sjrcpa

Level 15

Is it on the beneficiary K-1s?

The more I know the more I don’t know.

L

lfieldAuthor

Level 2

No. The income and the related QBI information is coming from a partnership interest owned by the Trust. The trust makes no income distributions and, therefore, pays its own taxes. The beneficiary k-1 has no reportable transactions.

sjrcpa

Level 15

Sorry. I have not dealt with this yet on a trust return.

The more I know the more I don’t know.

C

CPAAlly

Level 3

did you ever get this resolved? i have the same issue with Proseries

L

lfieldAuthor

Level 2

We did not finalize the return until sometime in late September. I honestly do not remember if the input screens changed in the many months from the posting of my question until the actual return was finalized.but I think they did. Anyway we ultimately input the information in screen 25, line 20 - Section 199A information. Lacerte then printed out a deduction equal to the proper amount on line 15 of the Form 1041. The deduction was included with several other items on line 15 of the 1041 so you have to go to the referenced return statement to see that it is included in the return. I hope some of this helps (a little bit). It was a very frustrating year. Good luck!

C

CPAAlly

Level 3

I use Proseries so the screen and line info does not correlate. I do appreciate your input though. I'm calling tech support tomorrow

George4TacksAnswer

Level 15

I just did a dummy return and I see the QBI showing up on line 15a, with a worksheet.

Possibly your return has too much income, or too much being distributed. I have no real experience other than having just played with a dummy return. I did find this enlightening article https://www.thetaxadviser.com/issues/2018/dec/claiming-qbi-deduction-trusts.html

Answers are easy. Questions are hard!

L

lfieldAuthor

Level 2

Thanks so much. I appreciate the clarification.

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