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Returning Member
posted Feb 27, 2025 7:05:23 PM

743b reporting

I use Turbotax Business.  I am preparing a form 1065 for an LLC which has a previiously filed section 754 election.  I need to make a 743b adjustment due to the death of a member.  How do I attach the required statement to the return in Turbotax Business? 

Also, how I do I get Turbotax to make entries in K-1 lines 13 and 20?

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1 Replies
Expert Alumni
Mar 5, 2025 1:47:23 PM

TurboTax Business does not support PDF attachments for e-filed returns at this time. You can still e-file your return, but you'll need to mail a paper copy your election statement to the IRS along with Form 8453, which you can print using Forms Mode.

 

Mail these completed forms to the IRS at the address below by the tax-filing deadline:

Internal Revenue Service

Attn: Shipping and Receiving, 0254

Receipt and Control Branch

Austin, TX 73344-0254

 

In order to report Box 13 Code V and Box 20 Code U to the partners on Form 1065 Schedule K-1, you will need to generate the Supplemental Information attachment for Schedule K-1 using Forms Mode.

 

Note: you will be making entries to more than one worksheet. Be sure you're in the correct worksheet for each step.

 

  1. Click the Forms icon in the TurboTax header.
  2. Look for Form 1065 p5-6 in the left column. Click the form name to open it in the large window. 
  3. Scroll down to the bottom of Line 13(e).
  4. Click the drop-down to the left of the first empty line (highlighted in yellow) and select "V". TurboTax automatically enters the description for Section 754 with an asterisk. Enter the total amount to be allocated to the partners.
  5. Scroll down to the bottom of Line 20(a).
  6. Click the drop-down to the left of the first empty line (highlighted in yellow) and select "U". TurboTax automatically enters the description for Section 743b with an asterisk. Enter the total amount to be allocated to the partners.
  7. Now open a Schedule K-1 [name of partner].
  8. Scroll down below Line 23 to the Supplemental Information Smart Worksheet. Enter "Line 13-V" and a description. Then enter the amount allocated to this partner. (TurboTax does not calculate this for you.)
  9. Repeat for "Line 20-U".
  10. Repeat Step 7 -9 for each affected partner. Leave all forms open until you review the results.
  11. To see Schedule K-1 and the attachment, print preview the form (in the menu bar, click File >> Print (Schedule K-1 will appear) >> Print Preview). Additional information will appear on a separate sheet after Schedule K-1, with the entry you made.
  12. When you're finished, click "Step-by-Step" in the header to return to the interview.