Schedule K-1 (Form 1120-S)

[wethepeople]

My client who is the sole owner of an S corporation received a Schedule K-1 for 2019 that shows an ordinary loss in Box 1.

On Box 17 a code V is entered and an attached statement shows that loss. In addition it shows an amount for W-2 Wages and  an amount for Unadjusted Basis Immediately After Acquisition.

When I enter these into my ProSeries Basic program, there is no change to the results.

I assume the reason is due to the fact that my client had a loss for the year and therefore there is no Qualified Business Income (QBI) deduction.

Was it necessary to include this statement as part of the Schedule K--1?

[sjrcpa]

Yes. QBI  losses carryforward to offset future  qbi for 199A deduction purposes.

[wethepeople]

Thanks.

Client reported business income on 2018 Schedule K-1. Is there any requirement  to carry 2019's loss back?

[sjrcpa · Accepted solution]

No. QBI does not get carried back

If you're asking about an NOL-a loss on a K-1 does not mean there is an NOL.

[wethepeople]

This is a related question regarding the same S Corporation.

In addition to Schedule K--1, client received a 2019 Schedule SK-1 which reports Massachusetts Information.

The loss on Line 1 is slightly less than that reported in Box 1 of the Schedule K-1.

How do I record that in ProSeries Basic?

[sjrcpa]

IDK. I use Lacerte.

[wethepeople]

Is anyone familiar with how to enter the information on the  Massachusetts SK-1 into the 2019 ProSeries Basic program?