Question on Schedule K-1 box 13 Code ZZ

Forum|Forum|7 months ago
February 28, 2026
2 replies
136 views

My Schedule K-1 has a code ZZ in box 13. The code ZZ description is "Section 743 Adjustment" with an amount of $188.

I entered the code ZZ in TurboTax with the amount it then asked for additional details with a list of choice to select from. I don't see Section 743 Adjustment in the list, so I selected "I have Another Description Item". It then gave me a description field and amount field to fill in. I understand all that.

My question is that it also then has a disclaimer that the amount may also need to be entered elsewhere in TurboTax. I clicked on the learn More link which didn't help and searched Section 743 Adjustments in the search bar but that yielded no results.

Do I need to enter the $188 anywhere else in TurboTax and if so, where?

MelindaS1

Alumni - Intuit

Is this K-1 marked as final with a check in the final box at the top? If so, you'll need to account for the increase/decrease in your partnership basis immediately when calculating your taxable gain/loss on liquidation of PTE. A similar principle applies if you received cash distributions above basis during the year that you anticipate reporting as taxable.

If you don't understand what this amount represents, you'll want to reach out to the tax return preparer for more clarification about why this adjustment was created. Learn more: FAQs for Internal Revenue Code (IRC) Sec. 754 election and revocation

If you received a distribution of partnership property during the year, you may need this amount to complete Form 7217 reporting the distribution and your basis in the property.

Otherwise, this adjustment is not used immediately for tax return input. This is informational for you or your accountant to update your basis calculation of the valuation of your share of the partnership investment.

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