Updated: Mar 3
S corporations and partnerships are required to report each shareholder’s or partner’s share of income and expenses for each qualified trade or business (or aggregated trade or business) on the individual shareholder’s or partner’s Schedule K-1, so the shareholder or partner can calculate their QBI deduction. Examples of income or expenses are listed below:
199A W-2 wages
199A qualified REIT dividends
199A qualified PTP income
Disclosure of information for aggregated trades or businesses
Verification of each trade or business as a specified service trade or business
The items shown above are reported on line 17, Schedule K-1 (Form 1120S) and line 20, Schedule K-1 (Form 1065).