Aggregation for QBI- Not wanted

[Bonnie]

Taxpayers (H & W) do not want to aggregate 3 rental properties for QBI. Program keeps generating QBI Sch B with unexpected aggregations and QBI Component forms. These are simple R/E qualifying partnerships for QBI (so marked on K-1s).

I see the link in Sec D2 on the K-1s, but I seem to be unable to change where the information is tracking.

I am obviously missing something about how these forms are joined.

What am I supposed to be doing to allow the QBI worksheets from the K-1s to flow through to Form 8825 correctly?

[Terry53029]

I believe the aggregation is done at the partnership or scorp level on the 199a worksheet

[Bonnie]

There is no aggregation of the 3 partnerships (LLCs). Each files its own return with no reference to the others.

On the MFJ return, there is the new form 8995. I decided, after trying to explain the problem a second time, that this might be the key for me. I have deleted the incorrect Form 8995 from the 1040. This allowed me to delete the Schedules that were aggregating the partnership K-1s incorrectly.

I also looked up the instructions for Form 8995. (What a concept! Read the instructions!)

I will try again.

[Bonnie · Accepted solution]

OK. I figured it out. On the Form 1040: For a partnership go to the imported or entered K-1.

You need to go to Section D2 Qualified Business Income Deduction:

1. Click on button for QBI Worksheet to report. This will bring up a screen where you can name the Worksheet. Because my client (H & W) own 3 partnerships together, I named the worksheet with the name of the partnership, call it Partnership A. Then this Worksheet called QBI Component will open. You may have to manually enter the EIN.

2. Go back to the K-1. Double click on the white area where your name will appear. This will give you the opportunity to actually link the 2 together (or unlink). You are actually creating a worksheet that does not get filed with the return. The information here goes to Form 8995 which does get filed and is part of the Form 1040.

3. Repeat step 2 for every K-1. Do not combine K-1s on any worksheets or the computer will think that you have aggregated and ask for a lot more incorrect information if the 2 K-1s from the same 1065 are there because both the H & W are partners/members.

IMHO step 2, where you have to create the worksheet from each K-1, and then in a separate step link the K-1 to the worksheet is overly complicated, and I was unable to find how to do this in the Cross Reference help.

However, I have solved my own problem in only 3 hours plus time last night. I hope I help anyone else who has this problem.

[iracpa]

So frustrated - I'm doing exactly what you say but it won't remain "linked" to the newly named QBI worksheet

[LAMCPA]

Bonnie,

On your solution outline, step #2 - what "white area where your name will appear" are you referring to.  I've been clicking around & can't figure it out.  I have multiple LLC's that need aggregating on 8995A.  Not aggregating makes big difference in QBI deduction.

Also:  in your "second time" comment - you "deleted Schedules that were notaggregating incorrectly" which schedules were those. 

Frustrating to say the least.  My own suggestion to ProSeries to give us an option with a blank 8995 for us to fill in ourselves - at least until they get the programming figured out.  I have specific Sec199A software (best $200 ever spent) so I know exactly how the numbers should aggregate & calculate.  Trying to fit into ProSeries in order to E-file is maddening.  Can't override the 8995 because it won't be accepted by IRS - even with error correction turned off (2018 nightmare).  

Your post is appreciated, as will be any response you have time to make.