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

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