K1 from S Corp with loss

[PATAX]

Client has a K-1 with loss from an S corp where client is 50% owner... No qbi supplemental information was provided with the K1 and no basis statement was provided either... Client has no other qbi activity on 1040 , and client does have basis much greater than the k1 loss... I called client and he said he gave me all the information that he received... I am hesitant about completing the return without the qbi supplemental information statement and the basis statement, even though I would be confident that the calculations on return would be accurate... What do you guys think? Thanks in advance...

[abctax55 · Accepted solution]

QBI is determined AT the entity level, so without that info on the K-1 (line 20 - code Z?) so you can't just put it on the F 1040.

Either it isn't QBI, or the preparer of the K-1 missed it.  You (or your client...) needs to contact the preparer to clarify.

[PATAX]

@abctax55 👍Thanks for the response and I hope you and everyone else are OK... I think the new preparer may have missed it like you said... I used to prepare that s corporations returns before 2020, so I know it was qbi in 2019 and before and there was large amount of basis as of end of 2019..... Thanks again..

[abctax55]

@PATAX  - sounds like you need to contact the preparer then.  Yuk.

Thanks for the good wishes; today is somewhat critical with Red Flag Warnings until 11:00 p.m.  After that, I may be able to relax a wee bit.  I do have to say this situation helps reset one's priorities; a lot of that extraneous *stuff* accumulated over the years suddenly becomes very unimportant.