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

Want to learn more about QBI Deductions with Multiple Entities?

You can watch our webinar on How to plan for Multiple Business Entity Impacts on the Qualified Business Income Deduction. See here to view the recording.

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