K 1 BOX 20 CODE N

[xhx831]

Hello,

I am trying to amend my 2024 tax return because I received a K-1 after my original filing. In BOX 20 I have three codes: AJ, N, and Z. I figured out how to input codes AJ and Z through browsing previous posts on this forum but I don't feel very certain about code N: should I input an negative number like one of the AJ codes (when representing expenses), or should I just input the number as is which is a positive number?

Thanks in advance.

[Mike9241 · Accepted solution]

from 2024 k-1 instrcutions. This number, entered as a positive number, should not affect your 1040

Code N. Business interest expense (BIE). For tax years beginning after November 12, 2020, the partnership will report your share of the partnership's deductible BIE for inclusion in the separate loss class for computing any basis limitation (defined in section 704(d) and Regulations section 1.163(j)-6(h)). This information is necessary if your losses are limited under section 704(d). Deductible BIE is reported elsewhere on Schedule K-1 and the total amount is reported here for information only and was already included as a deduction on another line of your Schedule K-1. Included in the code N information is a statement providing the allocation of the BIE already deducted by the partnership by line number on Schedule K-1.
Any EBIE not deductible under section 163(j) will be included in box 13, code K, for inclusion in the basis limitation and isn't reported here. See Worksheet for Adjusting the Basis of a Partner’s Interest in the Partnership for additional information about computing the loss limitation