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Federal input screens

Screen K1QBI - Schedule K-1, 1065/1120S - QBI from Pass-Throughs (1040)

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Overview

Use Screen K1QBI to enter qualified business income from pass-throughs entities. If necessary, you can enter more than 1 trade or business when the partnership or S corporation has provided more than 1 QBI/qualified PTP items subject to partner-specific determinations item on the Schedule K-1 statement.
Data sharing
You can elect to import the 1065 Schedule K-1 using the per-activity method as follows: In the 1040 client, select
File
,
Client Properties
,
Advanced Properties
, and mark the
Elect to import the data share of 1065 Schedule K-1s by the per activity method, in lieu of the single K-1 method
 checkbox.
Trade or business name
Enter a unique name from the Schedule K-1 - QBI/qualified PTP items subject to partner-specific determinations statement. To use the entity name, leave the field blank.
PTP
Mark this field if the trade or business is a publicly traded partnership. UltraTax CS marks this field and treats all K1QBI screens as publicly traded when 1 of the following applies.
  • In the K1 screen, the type of entity is 4, or
  • In the K1-2 screen, the
    Activity is a publicly traded partnership owned by this entity
     field is marked.
Any ordinary/gain of loss from the Publicly Traded Partnership Information and Sales section in the K1-7 screen is added to the qualified business income.
If this field is marked but the entity or activity isn't a publicly traded partnership, UltraTax CS can't apply loss limitations or apply ordinary income. The qualified business income marked as PTP goes to Form 8995, line 6, or Form 8995-A, line 28.
Aggregated
Mark this field if, at the entity level, the trade or business was an aggregated business. You must attach a copy of the relevant pass-through entities' aggregation. When filing electronically, UltraTax CS will produce a diagnostic to remind you to upload a PDF file of the aggregation as an electronic filing attachment. The diagnostic will be cleared once a document has been uploaded.
Specified service business
Mark this field to indicate that qualified business income for this unit is from a specified service trade or business. The qualified income from this activity will be treated as follows:
  • Taxable income that's less than the threshold is included on Form 8995.
  • Taxable income that's between the threshold and maximum amount is included on Form 8995-A (Schedule A).
  • Taxable income that's greater than maximum amount allowed for specified service trades or businesses isn't included on the return.
Ordinary income or (loss), Rental income (loss), Other rental income (loss), royalty income
Enter the amount provided by the entity for this unit. UltraTax CS will apply any basis, at-risk, or passive activity adjustments to be included in the qualified business income.
Section 1231 gain (loss)
Enter the amount provided by the entity. UltraTax CS will include Section 1231 gains or losses in qualified business income only when they're not included in ordinary income.
note
  • Capital gains aren't included in qualified business income.
  • The K-1 Reconciliation Worksheet – Qualified Business Income will indicate whether or not Section 1231 was included.
Section 179 deduction
This field doesn't datashare and must be entered manually.
Other deductions
Enter the amount provided by the entity for this unit. The other deductions from 1065 / 1120-S Schedule K-1 may be included in the qualified business income.
  • Deductions – royalty expense
  • Section 59(e) expenditures
  • Excess business interest expense
  • Dependent care benefits
  • Preproduction period expenses
  • Reforestation expense
  • Other deductions listed separately
Use this unit as primary unit for limitations and other QBI deductions
When this screen has more than 1 unit, UltraTax CS produces the K-1 Reconciliation Worksheet – Qualified Business Income Totals. UltraTax CS applies the following to the first unit: loss limitations, unreimbursed partnership expenses, debt finance acquisition interest, and deductions for SE tax, health insurance and pensions.
Mark this field to apply the adjustments to the current unit instead of the 1st unit.
Qualified business income (Force)
The K-1 Reconciliation Worksheet – Qualified Business Income report provides a comparison of the total K1QBI screen amounts and the amounts in the K1 screens. If the income on Schedule K1 and the amount from the Section 199A Information statement have different qualified business income, enter an amount to use for this unit. UltraTax CS will use this amount instead of the system-calculated amount on Form 8995 or 8995-A. The K-1 Reconciliation Worksheet – Qualified Business Income will indicate that the amount has been forced.
Regulation Section 199A-4 aggregation grouping number
To include this trade or business in a grouping for the qualified business deduction under the rules of Regulation Section 199A-4, enter a group number. Use the same code for all the trade or businesses in the same group. UltraTax CS combines all group members into one calculation. Form 8895-A, Qualified Business Income Deduction, Schedule B – Aggregation of Business Operations is produced only when the Form 8995, Qualified Business Income Deduction Simplified Worksheet isn't used.
note
If the pass-through entity aggregated this unit and you marked the
Aggregated
 field in the Qualified Business Income section, you can still include this activity in an aggregation on this return. However, it's not required.

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