Level 2

Question

199A REIT Dividends Flowthrough on 2019 1041 Tax Return for K-1 Beneficiaries

Forum|Forum|6 years ago
February 12, 2020
13 replies
60 views

Working in the 1041 tax return for 2019.

199A information for REIT Dividends Box 5 was entered in Form 1099-Div Worksheet.

199A REIT Dividend information flows through to the Interest/Dividend Income Work.

This is a complext trust 1041 tax return.

There are 4 beneficiaries thus 4 K-1 Forms with 25% ownership interests.

All of the distributed net income (line 7, 1041 tax return) is going out 25% to each of the beneficiaries. Trust is not paying the tax. All income is flowing out to beneficiaries.

When I look at the beneficiary K-1 forms I see the program allocating properly their share of dividends, qualified dividends, interest income, tax exempt income, and foreign tax.

What I need clarification on it why the 1041 tax program is not allocating the 199A REIT dividend information coming off the 1099 Investment Report to each of the beneficiaries K-1 Forms.

Am I missing something. Is the 1041 tax program supposed to be doing this allocation or the allocation should not be happening for some reason or am I supposed to be manually putting in this allocation on each of the K-1 forms.

ProSeries Professional

This topic has been closed for replies.

IRonMaN

Level 15

It could be because the K-1 may not be ready for the 199 stuff yet. Individual returns are lagging behind on K-1s handling QBI so the 1041s could be in the same boat. If you can get it loaded in manually, I would go that route rather than waiting for any updates that may or may not be on the horizon.

Slava Ukraini!

B

Bear2Author

Level 2

Yes - that is possible and the only explanation for now based upon a convervation I had with the proseries business technical department for which I was on hold for many hours which is another issue. If what I have been is accurate there is a final update for 199A forms for 1041 due 2/21/2020.

What I don't like is the 1041 return acts like it is ready for filing when you put in 199A related information.

What I should see from the program is you input information into box 5 for 199A dividend information and at the top of the screen there should be some form of indication that there is a form not ready yet thus the entire return can not be e-filed until this date.

Most of the time that happens when any form is not ready but for whatever reason when inputting information into that particular specific box on the dividend/interest 1041 worksheet this message is not happening.

As of right now this issue has not been resolved and I am not convinced my question was really answered yet. Yes there is a form not updated yet for 199A but the second question is am I supposed to be seeing a flow through of this information to the K-1 form - yes or no.

I am assuming that this update on 2/21/2020 will fix the issue I am making an inquiry about.

T

taxpro2000

Level 4

I'm also encountering this same issue. It is now 2/23/2020 (after the supposed update)...the K1 still does not report the flow through of the 199A REIT dividends. Can someone help with this issue?

Original post question repeated: Yes there is a form not updated yet for 199A but the second question is am I supposed to be seeing a flow through of this information to the K-1 form - yes or no.

J

JeffreySCooperCPA

Level 2

Still waiting on a fix to this problem.

C

Craig Williams CPA

Level 3

I spent 3 hours with Tech Support last Thursday. I was able to prove to them that the network version is not handling 199A allocations at all, and that the stand alone version is handling it perfectly. I sent them a sterilized file and they got the same results I did with the network version and the stand alone. I have not heard a word from them since. The problem was pushed up the chain to the programmers. Nothing like sitting here on 3/2/20 waiting for software corrections that should have been worked out in 2019. These issues unfortunately are annual events with ProSeries 1041.

J

JeffreySCooperCPA

Level 2

Received an email saying this problem has been fixed Case Number [social security number removed]

J

JosetteL

Level 2

In 2022, this still seems to not be corrected. I'm using Deluxe to do my mom's 1040. It has 199A dividends from REITS in an index fund. She also has a 1041 from a residuary simple trust. Within this trust's investments, there is also an index fund with REITS that generates 199A dividends. When I entered the K-1 data from the 1041, all of it flowed through to the 1040 (interest, regular dividends, cap gains) except for the line 14 item I 199A dividends. Was on the phone for 2 hours with Intuit "professionals" and they were horrible. They just guided me through the return in a hit or miss manner, looking for a possible answer. I had already done that. They knew less than I did. Total exercise in frustration! Can anyone offer any advice? I really don't want to override, because I want to efile and want the guarantee. So disappointed in Turbotax! Thanks!

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