Gain or loss from the disposition of your S corporation stock may be net investment income under section 1411 and could be subject to the net investment income tax. Items Affecting Shareholder Basis. I was hoping there was just something I was missing. Monitoring the finances or operations of the activity in a nonmanagerial capacity. Code M. Credit for increasing research activities. This information will be reported on Schedule K-1, box 13, codes U and V. An eligible partnership can calculate the QPAI and . Box 15. The K1-form instructions describe it as - "Line 13w Other deductions - Trader expenses. If there was a gain (loss) from a casualty or theft to property not used in a trade or business or for income-producing purposes, the corporation will provide you with the information you need to complete Form 4684. Since at-risk limitations apply for each activity, you should get a separate statement of income, expenses, and other items, for each activity from the corporation. Instead of attaching a copy of your Schedule K-1 to your tax return, you can include a statement with your return that provides the corporation's name, address, EIN, and backup withholding amount. "https://www.youtube.com/taxact", Educational assistance benefits. You will need to determine the amount of the ordinary dividends that are attributable to PTEP in your annual PTEP accounts. Mine rescue team training credit (Form 8923). See the Form 3468 on which you took the original credit for other information you need to complete Form 4255. See the Instructions for Form 8582 for details. Enter 1260(b) and the amount of the interest in the space to the left of line 17z. Check box a (2439) add words "Form 1065" I Biofuel Producer Credit (Form . About the Schedule K-1. Box 13, Code W may represent a variety of deductions and the partnership should provide details regarding the reported amounts. Code A. Post-1986 depreciation adjustment. The partnership will provide a statement describing the qualified timber property for these reforestation expenses. Don't enter them on Form 8582. 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. See section 163(j) and the Instructions for Form 8990 for details. I received a Schedule K-1 (Form 1065) with a number in Box 13, and an associated code of W. On the subsequent instruction page, the value is listed as follows: Partner Filing Instructions: Portfolio Deduction. See Pub. The partnership will provide a statement that describes the film or television production generating these expenses. See the Instructions for Form 8886 for details. These credits may be limited by the passive activity limitations. Qualified investment in advanced manufacturing investment facility property. Generally, you must increase the basis of your stock by this amount. See Form 7203, line 13. Rul. To get forms and publications, see the instructions for your tax return or visit the IRS website at IRS.gov. For example, if the corporation's tax year ends in February 2023, report the amounts on your 2023 tax return. Report the information on the statement attached by the corporation on the applicable lines of Form 6251 or Schedule I (Form 1041). The manner in which you report such interest expense depends on your use of the distributed debt proceeds. Report this amount, subject to the 30% AGI limitation, on Schedule A (Form 1040), line 12. See Schedule K-3 to complete your Form 1116. See Pub. Film, television, and live theatrical production expenses. Items affecting shareholder basis, Page Last Reviewed or Updated: 30-Jan-2023, Request for Taxpayer Identification Number (TIN) and Certification, Employers engaged in a trade or business who pay compensation, In boxes 10, 12, 13, and boxes 15 through 17, the corporation will identify each item by entering a code in the column to the left of the dollar amount entry space. However, when applicable, all shareholders must complete and attach the following credit forms to their return. Report this amount, subject to the 60% AGI limitation, on Schedule A (Form 1040), line 11. 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? If you have credits that are passive activity credits to you, you must complete Form 8582-CR in addition to the credit forms identified below. Report a loss in Part I of Form 4797. To determine your QBI or your qualified PTP income amounts and for information on where to report them, see the instructions for Form 8995 or Form 8995-A. Any loss from a section 465 activity not allowed for this tax year will be treated as a deduction allocable to the activity in the next tax year. What to select in "Enter Code W Detail" if box 13w, other deductions is not 0? Code L. Recapture of section 179 deduction. In general, shareholders whose only sources for a credit listed on Form 3800, General Business Credit, Part III, are partnerships, S corporations, estates, trusts, and cooperatives, aren't required to complete the applicable credit form or attach it to their return. Code I. Look-back interestCompleted long-term contracts. Please consult your tax advisor.". Received a schedule K-1 from a Master Limited Partnership (MLP) with a W code in box 13. Include investment income and expenses from other sources to figure how much of your total investment interest is deductible. The corporation will identify the type of credit and any other information you need to figure these credits from rental real estate activities (other than the low-income housing credit and qualified rehabilitation expenditures). If you were a real estate professional and you materially participated in the activity, report box 2 income (loss) on Schedule E (Form 1040), line 28, column (i) or (k). The activity was a significant participation activity for the tax year, and you participated in all significant participation activities (including activities outside the corporation) during the year for more than 500 hours. On a statement attached to Schedule K-1, the corporation will identify the type of credit and any other information you need to figure credits other than those reported with codes A through O. April 11, 2022 12:10 PM. Use the information provided to you by your S corporation to complete the appropriate form identified above. See the instructions for these forms for details. You have clicked a link to a site outside of the TurboTax Community. The corporation will report your share of any recapture of section 179 expense deduction if business use of any property for which the section 179 expense deduction was passed through to shareholders dropped to 50% or less before the end of the recapture period. Report this amount on line 3 of Form 8844, Empowerment Zone Employment Credit, or Form 3800, Part III, line 3 (see TIP , earlier). 526, Charitable Contributions, and the Instructions for Schedule A (Form 1040). For your protection, Schedule K-1 may show only the last four digits of your identifying number (social security number (SSN), employer identification number (EIN), or individual taxpayer identification number (ITIN)). Any information you need to complete a disclosure statement for reportable transactions in which the corporation participates. There are potential limitations on corporate losses you can deduct on your return. If you have net income (loss), deductions, or credits from any activity to which special rules apply, the corporation will identify the activity and all amounts relating to it on Schedule K-1 or on an attached statement. Did the information on this page answer your question? If the corporation has more than one activity, it will attach a statement to your Schedule K-1 that identifies each activity (trade or business activity, rental real estate activity, rental activity other than rental real estate, portfolio income) and specifies the income (loss), deductions, and credits from each activity. When trying to enter this value in TurboTax, I don't feel that I see anything in the list that resembles this. The corporation will report portfolio income other than interest, ordinary dividend, royalty, and capital gain (loss) income, and attach a statement to tell you what kind of portfolio income is reported. "https://twitter.com/taxact", The deductible part of self-employment taxes. If it reports the other two types of unrecaptured gain, it will provide an attached statement that shows the amount for each type of unrecaptured section 1250 gain. See Regulations section 1.1367-2 for information on reduction in basis of a loan and restoration in basis of a loan with a reduced basis. Reduce the basis of your stock by the amount of this deduction up to the extent of your adjusted basis in the property. See the instructions for Form 8995 or Form 8995-A. Code K. Dispositions of property with section 179 deductions. See Passive Activity Limitations , earlier, and the Instructions for Form 8582-CR for details. Report unrecaptured section 1250 gain from an estate, trust, regulated investment company (RIC), or real estate investment trust (REIT) on line 11. Code N reports educational assistance benefits. Schedule K-1, box 19, will be checked when a statement is attached. If total noncash contributions reported in this field and elsewhere exceed $500, the program reports these amounts on Form 8283. A tax benefit item is an amount you deducted in a prior tax year that reduced your income tax. Interest expense allocated to debt-financed distributions. Don't file it with your tax return unless backup withholding is reported in box 13 using code O. However, you may elect to amortize these expenditures over the number of years in the applicable period rather than deduct the full amount in the current year. If you are an individual, and the above limitations don't apply to the amounts shown on your Schedule K-1, take the amounts shown and report them on the appropriate lines of your tax return. Your modified adjusted gross income wasn't more than $100,000 (not more than $50,000 if married filing separately and you lived apart from your spouse all year). The corporation will provide all the following information. Code N. Credit for employer social security and Medicare taxes. Mark as New; Bookmark; Subscribe; Report this amount on Form 8912. Excess business loss limitation. Report unrecaptured section 1250 gain from the sale or exchange of an interest in a partnership on line 10. There's no input code available for code W due to the variety of information that can be reported here. See the instructions for line 4g of Form 4952, Investment Interest Expense Deduction, for important information on making this election. If you materially participated in the production activity, report the deduction on Schedule E (Form 1040), line 28, column (h). If you are an individual, you materially participated in an activity only if one or more of the following apply. If the corporation is reporting expenditures from more than one activity, the attached statement will separately identify the expenditures from each activity. Soil and water conservation expenditures and endangered species recovery expenditures. 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