Why are old depreciated assets included in 1065 K1 line 20AB?

[LSTAX]

partner K-1s include their percentage of fully depreciated assets. This must be part of QBI 199A deduction and sounds like it flows to individual's 1040 form 4952 Investment Interest Expense Deduction but should I stop the depreciated assets from showing on K1 line 20AB?

[itonewbie · Accepted solution]

Are those assets within 10 of when they were first placed in service?

[LSTAX]

one computer placed in service in 2011

[sjrcpa]

bingo

[itonewbie]

That's the reason. See §1.199A-2(c)(2).

[itonewbie]

Bingo is tomorrow night, I thought :joy:

[sjrcpa]

You're right. I get my days mixed up this time of year. :smile:

[itonewbie]

:joy: :+1:

[LSTAX]

I'm trying to figure out the lacerte message ref #51583 for sec 199A the program assumes ordinary income.... less allowable sec 179 expense represent QBI.  This partnership has a very small loss and then shows the prorated asset which was not disposed of.  I supposed it is qualified property.  Is this just sending the information to the K-1 in case partner needs to use?  Any help appreciated.
 

[itonewbie]

Yes, since QBI deduction is to be determined and taken at the partner's level, information such as items of QBI, W-2 wages, and UBIA must be provided to each partner.  This includes negative QBI, which the partner must net against positive QBI, if any, before figuring the applicable limitations.

You should note, however, that Intuit's position about reducing QBI at the RPE level for §179 appears not to be correct.  We are still having an on-going technical discussions with Intuit, which has agreed to roll out, I think later this week, an option to exclude §179 in the computation of §199A income at the RPE level.  If your partnership has any §179, you may want to review this in more details.