Amounts reported on your Schedule K-1 aren’t automatically included in your QBI. To figure if the item of income, gain, deduction, or loss is included in QBI, you must look to how it’s reported on your tax form. Only information that is reported on the K-1 as Qualified Business Income is included in the calculation.
Which entries qualify for QBI on my K-1?
Form 1065
- Information reported in Box 20, Code Z.
Form 1120-S
- Information reported in Box 17, Code V.
Form 1041
- Qualified Business Income, Section 199A