K-1 Line 20 AH other information

[Adam4]

I received a K-1 from a PTP. NOw, Line 20 has known codes and AH is the final one. However, this PTP added codes AH1 - AH9. The software allows only AH code. I have no idea where these AH1-AH9 will go and how to enter them into the software. 

The description of these codes are as follows:

AH1 UBTI included on Schedule K-1, lines 1, 2, and 3 

AH2 UBTI from debt financed dividend and interest income included on Schedule K-1, page 1

AH3 Depreciation Adjustment for Non-Conforming States

AH4 Section 1231 Gain (Loss) Adjustment for Non-Conforming States

AH5 AMT Depreciation Adjustment for Non-Conforming States

AH6 Entity Level State Income Tax Included in Box 1

AH7 Gross Receipts

AH8 Nontaxable Adjustment to Capital Account

AH9 E&P adjustment due to depreciation and asset sales

[-tax-prep-2018on]

I had 2 AH items and entered them both as just AH; once I hit Continue button on Box 20 screen Turbo Tax offered another screen ENTER BOX 20 CODE AH AMOUNTS, which allowed for details. Since none of the explanations fit my situation, I entered in the Other Description Enter Below section. Maybe see what other answers come up, I am not a tax professional. 

[Adam4]

i added some items as you said and it made no effect on my taxes!! Did it change anything in yours?

[-tax-prep-2018on]

Nope.

[Adam4]

then why record it and worry about it?

[sgiitb85]

What is the purpose of entering this data for AH1 thru AH9 if the numbers seem to go where ever Turbo Tax can take?

[sgiitb85]

So did you add the numbers in AH1 thru AH9 and put it in one box for AH or did you simply created multiple AH entries for each AH1 thru AH9?

[Handley1979]

Adam, I have the exact same issue.  I just upgraded from Deluxe to Premier after speaking with a CPA at Turbo Tax and explained that there was no way for TT to determine the differences between all of my AH sub categories and where they needed to go in the software, and she thought the upgrade might fix the issue  It did not.  It seems to work exactly the same. PLEASE share if you figure out how to make it work.  I need the ability for TT to know what to do with a AH1, AH2, AH3, AH5, AH6, and AH7.

Totally frustrated and day lost to TT.

Susan

[MarilynG1]

@Handley1979  Click this link for instructions on how to enter the Box 20 AH Codes on your Form K-1 (screenshot).

Most of the time, these entries will not affect your tax return; they are informational in nature.

Click this link for more info on How to Enter a K-1.

Since we can't see your tax return or your K-1 in this forum, you can request an Offline Review if you need more help. 

[tocguy]

None of the responses here have yet to address the OP's question. I also have that question as do others some of whom have also posted in this thread. The AH Codes associated with Line 20 are more numerous than the TT form supports. In addition, attempts to force entry cause issues that break the program. Example, Code AH6 appears on the TT form as an automated Summary Totalizer whereas on our Partnership forms AH6 is " Entity Level State Income Tax Included in Box 1". Thus, using it to enter an arbitrary "SUM" for Code AH would be incorrect. Further, AH6 is as the highest AH sub-code that the TT form presently supports. Our Form 1065 Schedule K-1s contain a very different AH6 as I describe above as well as codes AH7, AH8, AH9.

Thus there s a gross disconnect between the present state of TT and the version of Schedule K-1's being found in the wild. As it stands, I cannot complete my taxes using the TT product due to this unsuitability for its intended purpose.

[DaveF1006]

No disconnect at all. You need to generate additional K1's to report each AH entry in Box 20. Follow these steps.

1. Prepare the first K1 in the name of the partnership and report information in all of the boxes, including one AH entry in Box 20.
2. Prepare the other 8 K1's in the name of the partnership but leave all boxes blank except for Box 20. prepare one AH entry in this section.
3. Repeat the same process for all remaining AH Box 20..

[tocguy]

Wow, one of us is very confused about the difference between Line 20 AH codes and Schedule K-1 business entities. From my understanding, multiple business entities can appear on the same K-1. In fact, I have this situation. What I also have for each of these business entities are Line 20 AH codes that range from 1 thru 9. The issue that I attempted to bring to your, Intuit's, attention is that TT only has capacity for AH subcodes to range from 1 to 6 rather than the 1 to 9 as we're seeing on our actual K-1 forms.

The advice you've provided applies but not in the way you describe it. I understand you suggesting to create new K-1s for each AH subcode but that instruction applies not to AH codes but instead it apples to the multiple entities that appear on a single K-1. If I were to follow that advice I would have over 30 K-1s in TT. As if taxes were not already confusing enough I think that would be just a little excessive. It is when a Schedule K-1 has multiple entities that they must be separated into individual K-1s in TT.

I'm sorry but I have to reject that suggestion as a non-viable workaround to TT's not being in sync with the K-1's were seeing in the wild.

[HS2]

So, did anyone ever figure this out? Schedule K-1 is arduous to say the least but I hope to figure it out, much like everything else on taxes and a million searches on the internet (why is this so darn complicated?).

Anyway, here's what I started to do:

1. Open Schedule K-1 under forms

Under box 20, there's a quickzoom...to enter information about codes E, T and H, I click on that...

And this is where I get confused.

- On my K-1 hardcopy I received from the company, it has multiple AH entries (20AH1, 20AH2, 20AH3 and 20AH5). And, each has its description which has nothing to do with TT that I can correlate anyway. For example, it says code 20AH1 - Bonus depreciation adjustment for most non-conforming states

- In TT, Under the quickzoom code AH - Other information, I have 1-6 options and #1 says Qualifying advanced coal project credit (3468) and it has sub sections a, b and c. Bottom line, no correlation there.

Should I pick option 1 in TT and enter amount there? The company is in the energy industry so AH seems to correlate with this (coal, gas, etc.) Or just put it under Other (below 5)?

Similarly, should I put 20AH2 on my K-1 in corresponding 2 under TT?

20AH3 under 3 in TT?

20AH5 under 5 in TT?

And so on?

Or, perhaps it doesn't matter at all because as a next step, I imported the txf file from the company's website. When I look at the K-1 after import, none of the AH information came through into TT. Was it simply ignored and TT didn't know what to do with the info or it doesn't matter?

Thoughts?

[PatriciaV]

Enter the amounts separately--you can have more than one line with code AH.

1. When you come to the screen Enter Box 20 info, on the first line, select Code AH-Other information from the drop-down list and enter the amount.
2. On the next line select code AH again and enter the second amount.
3. On the next screen, enter any amount where the description matches (see screenshot below).
4. If the description is not listed, add it to the boxes at the bottom with the amount. Note that certain items (generally labeled "Other") on your K-1 may need to be entered in several different places in TurboTax. Consult the instructions that were included with your Schedule K-1. These should tell you the form and line where the amount should be entered, then, follow these instructions:

   Enter the form number or name of item in the search field in the toolbar at the top of this screen. You will then be presented with a list of topics that address this form. Select the topic that best matches the description given in your K-1, and then let TurboTax guide you the rest of the way.

Since these amounts pertain to deprecation, it's unlikely they'll affect your return.