I have a k1 with required entries for form 4797 part ii line 10 and form 6251 line 17. How do I enter the numbers in turbo tax?

[TerryA]

Does the TurboTax federal K-1 worksheet (you didn't mention which K-1: 1041, 1065 or 1120S) not have an entry for the line numbers those things are on? If there are line numbers on your K-1 for those things, what are they and which K-1 are you referring to?

[OLLIEDOG1]

it is a 1065 k1. the k1 has a 2017 sales schedule which shows ordinary gain to be posted to form 4797 part 11 line 10 and an amt adjustment for form 6251 line 17. this has to do with a stock exchange (one entity for another with no cash exchanged) which is a taxable transaction (a limited  partnership's stock exchanged for a corporation's stock). i need to know how to access the forms to enter the data.

[TerryA · Accepted solution]

Ah, thanks for the clarification!

The 4797 Part II income should be entered in the TT K-1 Wks Box 11, Code F, enter the total of Code F items, including your amount. The next screen check Section 751(b) Gain or Loss... and enter the amount you have. Section 751(b) sounds scary but you can ignore that - the amount goes to Form 4797 Part II line 10 and that's what we want.

For the 6251 line 17, that's the K-1 Box 17 (AMT items), Code B, Adjusted gain or loss

[jhflora654]

I have the same situation, but my Code F is listed as 0 on my Schedule K-1 from the company.  My Box 17 Code B is also listed as 0.  Any suggestions?

[TerryA]

"0" (zero) amounts don't have to be entered - skip them.

[tution]

My K 1 shows 751 gain on Line 20 AB, but I do not see this carry over to Form 4797.  Do I need to also include on line 11 code f? I did try this but did not see anything come up for 751 gain

[DavidS127]

In 2019 TurboTax, for a Form 1065 (Partnership) K-1, you use box 11 with a code of I (e.g., India) to get your Section 751 gain or loss to Form 4797.  After you enter the code I and the amount, the next screen is Enter Code I Detail.  Make the "751(b)" selection, and then a box will open for you to enter the Section 751(b) number.

@tution

[moncul]

Hi, I have a final K-1 1065, where I sold all of the shares. And the K-1 package is telling me that I need to enter the section 751 gains on 4797. So your answer sounds like what I should be doing, but I find it confusing given the TTax flow.

I do have a small amount on my K-1 box 11 with code=I, that I entered. However, the K-1 form is telling me that this needs to go on schedule D, line 12.

And then I have a box 20 code=AB amount that is the gain (a big gain), and TTax does tell me "Section 751 gain", so it sounds like that's the right place to enter it for 4797 purposes. But it doesn't end up on the 4797.

Bottom line, I find it confusing that my K-1 is reporting the section 751 gain on box 20AB, and TTax is accepting this, and acknowledging it as "section 751 gain", but it doesn't end up on the 4797. Not to mention that I have something in box 11 with code=I, that is supposed to end up elsewhere.

Any thoughts?

[moncul]

To follow up, I did use the technique of entering it on box 11, and it did end up on 4797. But my K-1 form is saying "this amount is considered qualifying PTP income for Sec. 199A", ie, QBI, but it's not definitely not showing up there at all, so I'm missing out on that deduction!

[DawnC]

Look at your Form 1040, Line 13 to see your qualified business income (QBI) deduction amount.   If you don't see it there, type in qbi into the search bar and use the Jump to qbi link to be taken to that section.    The questions you need to complete for this deduction will be found at the end of the K-1 entry.    And you definitely want to claim that credit as it is valuable.  

The deduction amount depends on the taxpayer's total taxable income, which includes wages, interest, capital gains (etc.) in addition to income generated by the business. Once the taxable income reaches or exceeds $163,300 ($326,600 if filing jointly), the type of business also comes into play.

At incomes below that level, the deduction is 20% of either taxable income (minus capital gains and dividends) or the QBI, whichever is less.   @moncul

[moncul]

Ok, I believe I figured this out, thanks to DawnC for cluing me in.

On my final K-1, I had the following in the supplemental section:

Sales proceeds: This is the total amount of the sale (this was actually blank, got this from the broker). Let's say this is 30k.

Cost basis: This is what changes over time because of the way these partnerships work. Let's say this is 10k.

Gain subject to recapture as ordinary income: This is what the form says should end up on 4797 AND is QBI. Let's say this is 35k.

So in TTO Flow:

On "Describe the partnership" page:

- Checked this is ptp

- Checked "this partnership ended in 2020"

- Checked "disposed of a portion of my interest..."

On next page, checked: "Complete disposition"

On next page, checked: "Sold partnership interest"

And on the page "Enter Sale Information":

- Sale price: Entered the 30k

- Partnership basis: Entered the 10k

- Ordinary gain: Entered the 35k.

And then at the very end, on the page: "We need some information about your 199A income"

- Checked "..has business income (loss)"

- Entered the 35k as "Ordinary business income (loss)"

- Entered the 35k as "Total ordinary 4797 gain(loss)...".

Now, the form told me that:

- I should see an entry on the 8949 that is a loss: Proceeds - Basis - Ordinary income gain: 30k-10k-35k. And I do see that loss item.

- I should see the 35k on the 4797, and I do.

- I should see the 35k qualify as QBI, and I do.

All good!

[shcliff]

I have the same questsion.  The amount of 4797 gain from my publicly traded partnership investment is indicated as being Qualified Business Income and therefore to be reported on Form 8995 rather than 4797.  I need to know how to make that reclass so that I get the benefit of the 20% exclusion.  Can I just do an override on both forms?  Should I add another line to the 4797 showing the reduction as a "reclass to form 8955" followed by another line item to the 8995, line 1?  

[moncul]

So my K-1 said to report the gain on 4797, AND that it's also QBI. By following the steps above, that's what happened. Form 8995 was automatically generated with the QBI calculation. So both forms 4797 and 8995 appear in my return. So I don't understand why yours would say "report on Form 8995 rather than 4797", it seems you need both.

[shcliff]

Thank you for pointing that out!  I took a closer look at the 8995 which accumulates all QBI income that has been reported in other sections of the return(i.e. Sch C, E, 4797 etc.) in order to quantify the 199A deduction.  It does not also include those income components reported elsewhere as 199A income.  So the Form 8995 is only used to compute the deduction which shows up under the itemized deductions on the 1040.  It's clear now.