What is ubia of qualified property on k1?

Ubiquity of Qualified Property (UBIA) on K1 refers to the amount of basis in a qualified property that a partner has at any given point in time. Qualified property refers to property that is used in a trade or business and is eligible for bonus depreciation or section 179 deductions.

When a partnership distributes qualified property to its partners, the partners' UBIA on K1 reflects their share of the partnership's basis in the property. This information is important for partners because it impacts their ability to claim depreciation and other tax benefits related to the qualified property.

The UBIA on K1 is calculated by taking into account the partner's share of the partnership's adjusted basis in the qualified property, net of any liabilities allocated to the partner under the partnership agreement. It is important to note that UBIA on K1 is a tax-specific calculation that pertains only to partnership tax returns and does not affect the financial accounting of a partnership.