How do I aggregate Section 199A activities in a 1040 return using interview forms?

  • Article Type:
  • How To
  • Last Modified:
  • 06/07/2019

Objectives

To aggregate Section 199A activities in a 1040 individual return using interview forms.

Environment

  • CCH ProSystem fx Tax
  • Section 199A
  • Interview
  • 1040

Procedure

To aggregate any combination of QBI activities together (Sch C, Rental, Sch F, or Passthrough) do the following:
  1. Go to Federal Interview Form QBI-1 - Qualified Business Income (Section 199A)
  2. In Box 40 - Entity Type, double click and select the applicable type.
  3. In Box 41 - Entity Number, key in the applicable entity number.
  4. In Box 42 - Qualified Option, double click and select X - Qualified. (Aggregation is not applicable to Specified Service businesses)
  5. In Box 72 - Aggregation Code (1040/1041), key in a number. (Limited to two digits)
  6. In Box 73 - Aggregation Name (1040/1041), key in a name to be printed on the QBID worksheets.
  7. Repeat steps 2-6 as needed for each additional activity that needs to be aggregated together.
  8. To aggregate passthrough activities, key in the aggregation code in the applicable input:
    • Federal Interview Form K-12 - K-1 Additional Information, Section 199A.
      • Box 66 - Aggregation code.
  • Federal Interview Form O-1 - Passthrough - General, Liabilities and Income.
    • Box 61 - Aggregation code.
  • Federal Interview Form IRS-K1 1065 - Schedule K-1.
    • Box 973 - Aggregation code.
  • Federal Interview Form IRS-K1 1120S - Schedule K-1.
    • Box 563 - Aggregation code.
  • Federal Interview Form IRS-K1 1041 - Schedule K-1.
    • Box 334 - Aggregation code.
  1. Go to Federal Interview Form QBI-2 - Qualified Business Income (Section 199A) Aggregation Information.
  2. In Box 40 - Aggregation Code, key in the same number as step 5.
  3. In Box 42 - Description of the Trade or Business and an Explanation of the Factors Met That Allow the Aggregation, key in information as applicable.
  4. In Box 43 - Explanation if This Trade or Business Aggregation Changed from the Prior Year, key in information as applicable.
  5. Calculate the Return.

To aggregate only passthrough activities, do the following:
  1. key in the aggregation code in the applicable input:
    • Federal Interview Form K-12 - K-1 Additional Information, Section 199A.
      • Box 66 - Aggregation code.
    • Federal Interview Form IRS-K1 1065 - Schedule K-1.
      • Box 973 - Aggregation code.
    • Federal Interview Form IRS-K1 1120S - Schedule K-1.
      • Box 563 - Aggregation code.
  2. Federal Interview Form IRS-K1 1041 - Schedule K-1.
  3. Box 334 - Aggregation code.
  4. Go to Federal Interview Form QBI-2 - Qualified Business Income (Section 199A) Aggregation Information.
  5. In Box 30 - Aggregation Code, key in the same number as step 1.
  6. In Box 31 - Aggregation Name, key in a name to be printed on the QBID worksheets.
  7. In Box 42 - Description of the Trade or Business and an Explanation of the Factors Met That Allow the Aggregation, key in information as applicable.
  8. In Box 43 - Explanation if This Trade or Business Aggregation Changed from the Prior Year, key in information as applicable.
  9. Calculate the return.

Additional Information

The calculations could be subject to change when the forms is not finalized.
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