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GGRNY

QBI & 179 deduction

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Hello, 

I cannot find where ATX is reducing the 1120S QBI on my client's 1040 by the section 179 on the corresponding K-1 schedule.  Is this something we have to do manually?  

Speaking of entering manually, any reason ATX doesn't automatically enter the numbers for the K-1 schedule directly to the 199A wksht?

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Yes, you have to adjust the K-1 number to the amounts the individual is getting from the business.

I don't understand why people are not getting the amounts to flow from the K-1, though you have to adjust the amount flowed through.  Our ATX is flowing it fine.

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Exactly how much info do we put on the K-1 if we prepare the 1120S?  I would think if income is QBI income, we note that but if there is 179 info (or SE income for 1065) on the K-1, it would seem the preparer of the 1040 (if not the same as 1120S preparer) would know that the QBI income would be reduced by the 179 amount before inputting into 1040 199A worksheet.  Does the 1120S preparer have to include on the K-1 notes how to calculate all this if the info is there for the 1040 preparer?

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It would be nice for the 1120S preparer to provide detail of the QBI  calculation in the K-1 notes, but in most cases, the 1040 preparer would be able to figure QBI (if the K-1 has indicated that there is QBI) by considering the various numbers on the K-1 and which ones should enter into QBI income, as well as other 1040 adjustments to income such as the deductions for self-employment tax, self-employed pensions, and self-employed health insurance..

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On 2/12/2019 at 6:33 PM, EricF said:

I don't understand why people are not getting the amounts to flow from the K-1, though you have to adjust the amount flowed through.  Our ATX is flowing it fine.

I reached out to ATX about this and their exact reply was "okay The amounts must be entered manually on the Activities tab of the worksheet. Automatic calculations are planned for the end of the month"

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