How do I generate Section 199A (QBID) information in a 2019 1065 return using worksheet view?

  • Article Type:
  • How To
  • Last Modified:
  • 01/20/2020

Objectives

How do I generate Section 199A (QBID) information in a 2019 1065 return using worksheet view?

Environment

CCH Axcess Tax
CCH Prosystem fx 
Worksheet view
QBID
Section 199A
1065

Procedure

To include all entities in the QBID calculation, do the following:
  1. Go to Income/Deductions > Qualified Business Income (Section 199A) worksheet.
  2. In Section 1, General, select field 1, All of taxpayer's activities are qualified.
  3. Recalculate the return.
  4. You will now see all your entities (trade or business, rental, farm....etc) on the Government View Form QBID (199A) Worksheet.
To include certain entities in the QBID calculation, do the following:
  1. Go to Income/Deductions > Business or Rental and Royalty....etc worksheet.
  2. In the Qualified Business Income section, in the Qualified Option (Field 1), choose Qualified or Specified Service.
  3. Recalculate the return.
  4. You will now see the entities you selected on the Government View Form QBID (199A) Worksheet.
To override the income amounts on the QBID (199A) worksheet for certain entities, do the following:
  1. Go to Income/Deductions > Business or Rental and Royalty....etc worksheet.
  2. In the Qualified Business Income - Overrides section, enter the amount in the correct override field.
  3. Recalculate the return.
  4. You will now see the amounts you overrode displayed for each entity on the Government Form QBID (199A) Worksheet.
To override the wages, UBIA...etc on the QBID (199A) worksheet for certain entities, do the following:
  1. Go to Income/Deductions > Business or Rental and Royalty....etc worksheet.
  2. In the Qualified Business Income section, enter the amount in the correct override field.
  3. Recalculate the return.
  4. You will now see the amounts you overrode displayed for each entity on the Government Form QBID (199A) Worksheet.
To allocate Schedule K-1, Line 20Z amounts to partners, do the following:
  1. Go to Income/Deductions  > Business or Rental and Royalty...etc worksheet.
  2. In the Qualified Business Income - Overrides section, enter the amount you want allocate in the appropriate field.
  3. Go to Special Allocations > Special Allocations worksheet.
  4. In Section 2 - Special Allocation Detail, double click in the Federal Code Look up field, this will display a list of codes and find the appropriate code. 5790 for Ordinary Income, 5791 for Rental Income...etc.
  5. Enter the partner number in the partner number field.
  6. Enter the activity number in the activity number field, if applicable.
  7. Enter the ratio ID number in the Ratio ID number field, if applicable.
  8. In the allocation field, enter the percentage (must equal 1.0 or 100%) or the amount you are allocating.
  9. Recalculate the return.
NOTE: QBID (Section 199A) allocation has been updated to allocate the amount based on the ordinary income (5203) allocation or rental (7003) allocation. If you want another allocation for QBID you will need to overide the amount on Income/ Deductions > Business > Qualified Business Income - Overrides section.
There are no longer any total overrides available, you will need to override each entity if you wish to override.

Additional Information

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