Allocate qualified property to the shareholder
Enter beginning of year shares if no ownership changes occurred. S Corporations must report pro rata shares of qualified items to shareholders for QBI determination.
If there were no changes of ownership during the tax year, the shareholder's beginning of year shares must be entered. To find this information, go to tab.
The S Corporation has to identify the shareholder's pro rata share of the following separately:
- Qualified items of income, gain, deduction, and loss
- W-2 wages
- Unadjusted basis immediately after acquisition of qualified property
- Qualified publicly traded partnership items
- Section 199A dividends (Qualified REIT dividends)
The S Corporation must make an initial determination of which items are qualified items of income, gain, deduction, and loss at its level and report to each shareholder their pro rata share of all items. The shareholder must then determine whether each item is includible in its QBI.
Corporations have to determine which items are qualified items of income, gain, deduction, and loss. You have to report the pro rata share of all items to each shareholder. Shareholders then determine which items to include in its QBI.
