The following diagnostic is generating:
Partnership # {PrefixNum} : The program does not automatically reduce Qualified Business Income (QBI) by unreimbursed partnership expenses. Enter the correct QBI as an override.
Solution:
This diagnostic generates in 2022 Lacerte Tax (or prior) when a partnership K-1 is entered that has both Qualified Business Income (Form 1040 Line 13) and unreimbursed expenses. In 2023 Lacerte tax (or later) an input column for Unreimbursed Expenses was added to the QBI section of the partnership K-1 input. 2023 Lacerte tax (or later) does have the ability to reduce QBI by unreimbursed expenses, so this diagnostic no longer generates.
1) Go into Screen 20.1, Partnership K-1.
2) Select that specific entity in the partnership list on the left.
3) Scroll to the section "Line 20, 21 - Other".
4) Select the relevant entity's line in the field "(20Z) Section 199A: Statements A and B"
5) Make an entry in the "QBI [O]" column with the corrected QBI amount. This will force Lacerte to use the overridden QBI amount for this activity and will clear the diagnostic.
