Schedule K-1 Box 13, Code W

[KevinSn]

I received a Schedule K-1 (Form 1065) with a number in Box 13, and an associated code of W.

On the subsequent instruction page, the value is listed as follows:

Description:  Legal and Accounting

Partner Filing Instructions:  Portfolio Deduction

When trying to enter this value in TurboTax, I don't feel that I see anything in the list that resembles this.

I was hoping to get some help with how / where to best enter this value in TurboTax.

Thank you for your time.

Kevin 

[Anonymous_ · Accepted solution]

If you take a close look at the list, it probably belongs in the category of "Miscellaneous Itemized Deductions" which, essentially, have been eliminated by tax reform (TCJA).

[KevinSn]

Thank you for the response!

I appreciate your time.

[Taxingtime]

My K-1 has a value in Box 13, Code W- Other Deductions, of $89.  Support statements says for individual taxpayers, certain IRC Section 212 portfolio deductions were previously deductible, but the deductiblity has been suspended.  Do I enter (0) on my Turbo Tax for this Box 13 instead of $89?

[Irene2805]

No - Enter the amount for Box 13 with Code W as it appears on the K-1.  After the entry screen you will a screen asking for details of the expense.

[ikibkilam]

But, even after entering it exactly as you say, nothing shows up in the return? Why is that?

[Anonymous_]

@ikibkilam 

If the line item represents miscellaneous itemized deductions (which is likely), those deductions were eliminated by tax reform (the TCJA) and will not appear anywhere.

[Anonymous]

@Anonymous_ - I'm in a similar situation. Received a schedule K-1 from a Master Limited Partnership (MLP) with a W code in box 13. The W has an asterisk after it, the related footnote of which states, "See attached statement for additional information." The statement in turns states the below. Since I am an individual, I assume the stated amount is non-deductible. Could confirm that is correct, and if so, explain which option to select on the related TT screen (see screenshot below)?

"The Portfolio Deductions from investing activities, if any, are non-deductible for certain taxpayers, including individuals, and would reduce your tax basis in the partnership. Please consult your tax advisor."

[DaveF1006]

It depends on the deduction. Since this is related to  a portfolio investment, it may be related to investment expenses that can be claimed as a miscellaneous itemized deduction.  If from a Real Estate portfolio, it could be a Nonpassive Deduction to reported in Schedule E.

Look at those statements a little more thoroughly but you may wish to contact the broker for further details.  

@Anonymous

[Anonymous_]

I agree and if they are miscellaneous itemized deductions, they are no longer deductible after tax reform (the TCJA).

[Anonymous]

@DaveF1006 - thanks. I did contact the company that generated the K-1 (namely, PWC that does it on behalf of the broker (Robinhood) and/or MLP) and they pointed me to TT's customer support for clarification :(...

@Anonymous_ - you agree with what? Contacting the broker for clarification? If so, see above.

[Anonymous_]

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@Anonymous wrote:

@Anonymous_ - you agree with what? Contacting the broker for clarification? If so, see above.

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With @DaveF1006; it is either a miscellaneous itemized deduction (which you cannot take) or a nonpassive deduction. Either way, it will likely make zero difference in your return.

[Anonymous]

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@Anonymous_ wrote:

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@Anonymous wrote:

@Anonymous_ - you agree with what? Contacting the broker for clarification? If so, see above.

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With @DaveF1006; it is either a miscellaneous itemized deduction (which you cannot take) or a nonpassive deduction. Either way, it will likely make zero difference in your return.

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Got it, thanks. I was hoping there was just something I was missing. I can't stand it when tax stuff is ambiguous...

[Billdozer78]

I have a K-1 from an investment partnership which qualifies as a Trader for tax purposes, so these expenses should be deductible.  Does anyone know which option to select in TurboTax to make it show up as a deduction somewhere?  I've tried "I have Another Description Item" and "Miscellaneous Itemized Deductions", but neither works.  Thank you.  

[Mike9241]

there are many types of items that are reported on 13W so what are they? are you a general partner or a limited partner? do uo actively participate in te trading activities?