Box 17 Code V of the 1120-S K-1 is the amount of section 199A income that will be used to calculate the Qualified Business Income Deduction (QBID) for this K-1 income.
If you have not previously claimed any section 179 deduction, please report the amount from Box 17 code V as it is reported to you. To report this within the program, please follow the steps listed below.
- Federal Section
- Income (Select My Forms)
- Less Common Income
- K-1 Earnings
- Schedule K-1 1120-S
- Deductions, Box 17 Code V Section 199A income
To report the amount shown in Box 17 of the 1120-S K-1 form with Code V, you may need to make a manual adjustment if you have previously claimed any section 179 deduction:
- If the 179 deduction has been taken at the individual level - reduce the amount of 199A income by the 179 deduction you previously claimed on this K-1 income (Box 11of this Schedule K-1 1120-S)
- If the 179 deduction has not been taken at the individual level, then there is no reduction in 1099A income.
The additional Section 199A fields should be reported as they are reported to you on your copy of the Schedule K-1 1020-S Box 17. These amounts will be used by the program, if necessary, to calculate the Qualified Business Income Deduction Form 8995.