"contactType" : "customer service", If you have amounts other than those shown on Schedule K-1 to report on Schedule E (Form 1040), enter each item separately on Schedule E (Form 1040), line 28. Any rental real estate loss allowed under section 469(c)(7) to real estate professionals (defined earlier). See Regulations section 1.1254-4 for details. Box 20 on Schedule K-1 includes new codes where entities can report Section 199A-specific information to their owners. If you have losses, deductions, or credits from a prior year that werent deductible or usable because of certain limitations, such as the basis limitations or the at-risk limitations, take them into account in determining your income, loss, or credits for this year. You are responsible for keeping the information needed to figure the basis of your stock in the corporation. These rules apply to shareholders who: Have a passive activity loss or credit for the tax year. See section 1260(b) for details on how to figure the interest. Section 199A(g) deduction from specified cooperatives. Generally, you may be allowed a deduction of up to 20% of your net qualified business income (QBI) plus 20% of your qualified REIT dividends, also known as section 199A dividends, and qualified publicly traded partnership (PTP) income from your S corporation. "https://www.instagram.com/taxact", Your share of S corporation income isn't self-employment income and it isn't subject to self-employment tax. This is your share of gross income from the property, share of production for the tax year, and other information needed to figure your depletion deduction for oil and gas wells. These limitations are discussed below. Does anyone know which option to select in TurboTax to make it show up as a deduction somewhere? The deductions are limited by section 190(c) to $15,000 per year from all sources. Purpose of Form. Don't report it elsewhere on Form 1041. Ask questions, get answers, and join our large community of Intuit Accountants users. Monitoring the finances or operations of the activity in a nonmanagerial capacity. See Passive Activity Limitations , earlier, and the Instructions for Form 8582-CR for details. On a separate line, enter interest expense and the name of the partnership in column (a) and the amount in column (h). About the Schedule K-1. Use Form 8582 to determine how much of these expenses can be reported on Schedule E, Line 28. I was hoping to get some help with how / where to best enter this value in TurboTax. If the credits are from more than one activity, the corporation will identify the credits from each activity on an attached statement. If you materially participated in the activity, report the interest on line 28 of Schedule E (Form 1040). Line 4 from the list above, less the sum of lines 7 and 8. If there is more than one type of expenditure, the amount of each type will also be listed. If you make this election, any amount described under (3) that exceeds the basis of your stock and debt owed to you by the corporation is treated as an amount described under (3) for the following tax year. If income is reported in box 3, report the income on Schedule E (Form 1040), line 28, column (h). See section 453(l)(3) for details on how to figure the interest. There's no input code available for code W due to the variety of information that can be reported here. However, the corporation has reported your complete identifying number to the IRS. If you are unable to reach an agreement with the corporation regarding the inconsistency, file Form 8082. The program reports the excess amount not qualifying for deduction on Form 1040 as an itemized deduction on Schedule A. The amounts reported reflect your pro rata share of the S corporations W-2 wages allocable to the QBI of each qualified trade or business, or aggregation. For example, if the corporation's tax year ends in February 2023, report the amounts on your 2023 tax return. A personal service activity involves the performance of personal services in the fields of health, law, engineering, architecture, accounting, actuarial science, performing arts, consulting, or any other trade or business in which capital isn't a material income-producing factor. See the instructions for these forms for details. Report the deduction on Line 28, column h, of the Schedule E. You'll need to determine how much of the box 13, code S amount is deductible, and whether the deduction is passive or nonpassive. #navigation-offset, .taxes-bar + nav.signed-in ~ #navigation-offset { 14223: 1040 - K1P Box 13 Code JD Last Year K1 Entries How do I enter code JD, Intangible Drilling Costs, from box 13 of K-1P? The corporation will give you a statement that shows the information needed to recapture certain mining exploration costs (section 617). See section 7874 for details. When determining QBI or qualified PTP income, you must include only those items that are qualified items of income, gain, deduction, and loss included or allowed in determining taxable income for the tax year. Report this amount on Form 8912. has an amount in Box 13 (Code W) with the Form 1040 filers should enter the Box 13, Code W loss on Schedule E, Part II as a non-passive loss instructions, the following steps will enable you to enter that into the TaxAct program.. After entering the Schedule K-1 information in your return (other . If any of the above limitations apply, adjust the amounts on Schedule K-1 before you report them on your return. If you have an overall loss (the excess of deductions and losses, including any prior year unallowed loss, over income) or credits from a passive activity, report the income, deductions, losses, and credits from all passive activities using the Instructions for Form 8582 or Form 8582-CR, to see if your deductions, losses, and credits are limited under the passive activity rules. You must determine if you materially participated (a) in each trade or business activity held through the corporation, and (b) if you were a real estate professional (defined earlier), in each rental real estate activity held through the corporation. This article will help you determine where to enter amounts from a partnership Schedule K-1 (Form 1065), Box 13: Other deductions, for an individual return in Intuit ProConnect. Box 13 is used to report many different items, so select on the codes below to view the instructions on entering them. Expenditures for the removal of architectural and transportation barriers to the elderly and disabled that the partnership elected to treat as a current expense. If the S corporation is required to file Form 8990, Limitation on Business Interest Expense Under Section 163(j), it may determine it has excess taxable income. For more information, see Passive Activity Limitations, earlier. 304, and Rev. The manner in which you report such interest expense depends on your use of the distributed debt proceeds. Most credits identified by code P will be reported on Form 3800, Part III (see TIP , earlier). Received a schedule K-1 from a Master Limited Partnership (MLP) with a W code in box 13. Gross farming and fishing income. If a statement is attached, see the instructions for Form 8864, line 10. Credit for small employer pension plan startup costs and auto-enrollment (Form 8881). Report this amount on Form 4952, line 4a. Code C. Section 1256 contracts and straddles. Income with respect to these qualified zone academy bonds can't be used to increase your stock basis. Otherwise, the program reports them directly on Schedule A. The partnership will provide a statement that describes the qualified timber property for these reforestation expenses. The self-charged interest rules don't apply to your interest in the S corporation if the corporation made an election under Regulations section 1.469-7(g) to avoid the application of these rules. 535 for details on how to figure your depletion deduction. The program carries this amount to the cash contribution line on Schedule A. Report the amount from line 12 of Form 4562 allocable to a passive activity using the Instructions for Form 8582. Since I am an individual, I assume the stated amount is non-deductible. The statement will also report your share of any excess inclusion that you report on Schedule E (Form 1040), line 38, column (c), and your share of section 212 expenses that you report on Schedule E (Form 1040), line 38, column (e). If you didn't materially participate, follow the Instructions for Form 8582 to figure how much of the deduction can be reported in column (g). Schedule K-1, box 19, will be checked when a statement is attached. See Limitations on Losses, Deductions, and Credits, earlier. The corporation will attach a statement that provides a description of the property, your share of the amount realized from the disposition, your share of the corporation's adjusted basis in the property (for other than oil or gas properties), and your share of the total intangible drilling costs, development costs, and mining exploration costs (section 59(e) expenditures) passed through for the property. Code L Credits that may be reported with code P include the following. The corporation will provide your share of its section 951(a)(1)(A) inclusions. The amount in box 5b may be attributable to PTEP in annual PTEP accounts that you have with respect to a foreign corporation. Use Schedule K-1 to report a beneficiary's share of the estate's or trust's income, credits, deductions, etc., on your Form 1040 or 1040-SR. Keep it for your records. If the proceeds were used in an investment activity, enter the interest on Form 4952. Employer credit for paid family and medical leave (Form 8994). The corporation will provide a statement showing the allocation of the credit for production during the 4-year period beginning on the date the facility was placed in service and for production after that period. See the instructions for Form 8995 or Form 8995-A. Line: Code: K-1 Description: Activity Type: Flows To: 13 D Noncash contributions (30% AGI limitation) Sch A, line 12 or, if the total of all noncash contributions is greater than $500, Form 8283 E Capital gain property (30% AGI limitation) Sch A, line 12 or, if the total of all noncash contributions is greater than $500, Form 8283 When the corporation has more than one activity for at-risk purposes, it will check this box and attach a statement. Special rules for certain other activities. Use this amount, along with the total cost of section 179 property placed in service during the year from other sources, to complete Part I of Form 4562, Depreciation and Amortization. If you are an individual shareholder, report this amount on Form 6251, line 2l. Could confirm that is correct, and if so, explain which option to select on the related TT screen (see screenshot below)? These credits may be limited by the passive activity limitations. 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