When trying to complete my personal tax return that has a Schedule K-1 1120S Form, there is an error that pops up and it says I need to fill out Part II of the Additional Information. It’s the section that says “Disposition of S Corporation Shares.” The problem is, there was no disposition of S corporation shares. There is nothing listed on box 17 of the K-1, which is why this worksheet is generated, I think. There is something for Box 17 Code V, but that is it. I feel like this is an error that it is asking for this information, and I don’t know how to get past it. Any ideas?
Code "K" in box 17 of schedule K-1 would indicate that you disposed of business property that had section 179 depreciation associated with it. I suggest you go back through your schedule K-1 entry and see if you checked code "K" in box 17, and if so you should delete it if it doesn't apply to you.
If you do that and still have the same problem, or you didn't choose the code "K" option, then you should delete the K-1 schedule and re-enter it.
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