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How to allocate QBI from a passthrough K-1 on a partnership return in ProConnect Tax

by ProConnect Tax Online Updated 1 year ago

ProConnect Tax offers two ways to specially allocate qualified business income (QBI) received from a passthrough K-1.

  • Option one allows you to specify a K-1 allocation percentage that will apply to all K-1 activities in the return.
  • Use option two, instead, if you'd like to use different allocation percentages for different passthrough K-1 activities.

Option one:

  1. Go to the Input Return tab.
  2. Select Schedule K-1 > Schedule K-1 Miscellaneous from the left menu.
  3. Enter the percentages in the field Schedule K-1 allocation percentage (xx.xxxxxx)[Override].
  4. Repeat these steps for each partner.

Option two:

  1. Go to the Input Return tab.
  2. Select Schedule K > Passthrough K-1's from the left menu.
  3. Scroll down to the General Information subsection.
  4. Select inside of the Partner overrides [Override] (Click on button to expand) field to enter the percentage for each partner.
  5. Repeat these steps for all passthrough K-1s, if applicable.

If you override the percentage for one partner using either of these options, you must override the percentage for all partners. Enter -1 to indicate zero, if needed.

Related topics

How to use special allocations in ProConnect Tax for Form 1065

ProConnect Tax

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