I have a client that owns real estate proper in Tenancy-In Common. There is some additional K1 information on the report. How to I enter the data for Tenancy in common

[mbuchine]

real estate property,
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

[George4Tacks]

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"

[mbuchine]

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

[sjrcpa]

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.

[mbuchine]

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.

[sjrcpa]

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.

[qbteachmt]

"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?

[mbuchine]

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

[mbuchine]

It is definitely Tenancy in common.

Just not sure what to do with the K1 items.

[BobKamman · Accepted solution]

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.

[sjrcpa]

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.