Qpad

[Unregistered]

I have read everything I can on this. I have a client with several K-1's as a limited partner. It gives the info in box 13 for the QPAI and wages to figure the credit. Question, is a limited partner allowed to take this credit? I can't find any reference to this. These are from PTP's tax shelters.

Also, if they can take the credit, I think I use the total from all the K-1's to figure the credit. Or do I have to do a 8903 for each K-1?

If it shows code V for wages as zero, then there is no credit because the credit is limited to 50% of the wages?

Thanks for your help.

[Bees Knees]

First: It is not a credit. It is a deduction.

Second: I see no requirement that a partner be a general partner. The deduction is based on the activity of the partnership, so if the partnership qualifies for the deduction, it passes that deduction through to all the partners.

As to multiple K-1s, again, it is a deduction the partnership may or may not have qualified for. So at the partnership level, if there are no W-2 wages paid by that partnership, that partnership does not qualify to pass through the deduction to the partners, and no deduction would be allowed for that K-1.

[Unregistered]

Thanks Bees Knees. And you're right. It is a deduction, not a credit. I was just saying it wrong.

I appreciate the help.