8903 buckets of income

[learningtaxes]

8903 - the first page of the instructions for 2018 8903 state "Patrons of specified cooperatives do not use Form 8903 to report the DPAD passed through to you".  So, if this is the case, why are people reporting the DPAD from the 1099-PATR on the 8903?  I think I'm missing something in this whole calc.  My understanding is the DPAD is then an addition to the QBI for the first bucket of income for farmers.  Can anyone comment what I might be missing?

[Just-Lisa-Now-]

There have been multiple discussions about the 8903 and DPAD in the message board here.   I don't have any clients that qualify for this, so I'm not up to date about it, but if you search the board, you should find the discussions.  

[learningtaxes]

i have searched but this question isn't answered.  maybe i should post this question on one of those discussion boards though.  thanks.

[TaxGuyBill]

I'm not up-to-date either, but from what I understand, the DPAD still needs to be CALCULATED on the 8903, even if the 8903 is not actually filed.  And you need SOMEWHERE to enter that information for QBI purposes.  So even if 8903 is just needed as a worksheet (and a place for QBI information to go somewhere), it is still needed.

[taxiowa]

Read the 8903 instructions again.  Under who must file form 8903 it includes individuals who received a DPAD pass thru from cooperative.  "Patrons of certain agricultural or horticultural cooperatives may be allocated a share of the cooperative's DPAD to include on Form 8903."   So maybe there is conflicting information even in the instructions.

[TaxGuyBill]

@taxiowa   That sentence is under the category of BEFORE 2018.  So I read it as if you receive a K-1 from a Fiscal Year entity, then you need 8903.

[taxiowa]

That is because it is a fiscal year cooperative we are speaking of.  Which means part of their crop sales were in 2017.  The DPAD is from 2017 sales when there still was a calculation in the books.  So we need to enter that on this year 8903.

[TaxGuyBill]

Yes, I agree.  But for a non-fiscal year cooperative (entirely 2018), you don't need a 8903 to report anything, right?

[taxiowa]

That is correct because no figuring for DPAD with 2018 income.  But I don't think are many or any calandar year cooperative.

[taxiowa]

But us folks in states which did not conform to elimination of DPAD still use the 8903 for business as usual for any business with wages and qualified production income.

[Just-Lisa-Now- · Accepted solution]

I typed 8903 into the search bar and this was one of the top hits.

https://accountants-community.intuit.com/questions/1806845-any-idea-when-proseries-will-have-a-fix-f...