Question

Box 20 Code Z has been selected but no Section 199A income has been entered on Statement A

Forum|Forum|2 years ago
April 1, 2024
3 replies
0 views

Hi,

I don't know why I keep getting this error. I have entered an amount next to the Code Z and re-run Smart Check and it is still giving me the error. Please help!

G

gdgarver1

Me too! Did you ever figure out an answer???

SusanY1

Code Z in Box 20 indicates that there is a statement with additional information. See the statement on your K-1 for the Section 199A information. Then return to the K-1 entry section of TurboTax, and select Edit.

Go back through this entry area. After you select Done you should see a screen that reads "We see you have Section 199A Income". It will look like this:

You will most likely select the first option here. You will then see additional screens to help you enter information from the statement that should accompany your K-1 and provide this detail. The detail typically includes items such as Business income, W-2 wages, and/or "UBIA" (Unadjusted Basis Immediately After Acquisition) of property.

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R

ravik_001

I have a relevant question. In my case, I don't see a single number for rental income, W2, and UBIA. I have two sets of numbers in the K1. See the following format

Section 199A - Box 20 Code Z statement

Rental income ###

W2 wages ##

UBIA ###

Rent - <partnership entity name> Phase II. Note: <partnership entity name> appears in the top left of K1 as the partnership name.

Rental income ##

Passthrough - <partnership entity name> phase II LLC

EIN #####

Rental income ###

W2 wages ##

UBIA ###

Question: When I combine all three rental incomes, it sums up to what I see in Box 2. Can I just sum up W2 wages, UBIA and enter them in the section 199A screen because it only shows one box for W2 wages and one box for UBIA in TurboTax

G

gdgarver1

I finally figured out how to fix this. Even if you have "rental " income, when you get to the checkboxes for the different types of income on your 199A, you need to check the box for "business income". When you do that, a second set of boxes appears where you can specify the rental income.

T

taxfiler1068

Thank you! This is such a garbage product. It's rental income not business income.

P

PaulaM

Rental income is Safe Harbor income and that is what is considered business income.

If all the safe harbor requirements are met, an interest in rental real estate will be treated as a single trade or business for purposes of the section 199A deduction

Safe Harbor @taxfiler1068

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