What Code W Detail to select for Portfolio Deduction in Box 13, form 1065?

[yellavud]

I purchased a stock a couple years ago and completely sold them out last year. I got a schedule K for it.

In box 13, there's a code W with an amount of $38. The supplemental information says that this is portfolio deduction that was previously in 13K.

The $38 amount also showed up in box 20 as code B. 

What option should I select when prompted to enter code W detail? I cannot skip it since when doing the smart check, I was asked to "enter 38. on the appropriate line or lines in this section" since "Other Deductions Code W Line 1 has no entry."

[Irene2805 · Accepted solution]

Since it was formerly a business interest expense (13K), enter the Code W as Nonpassive Deductions to be reported on Schedule E, page 2.

The entry in Box 20 code B is investment interest expense, which used to be deductible on Schedule A as Miscellaneous Itemized Deduction subject to 2% limitation.  The Tax Cuts and Jobs Act  eliminated this deduction for Tax Years 2018-2025.  However, it will flow to the state return if it is allowed there.

[yellavud]

Thanks!

[DaveF1006]

If you go to box 13, enter code W and leave the $ amount blank. Press continue and there will be a code W detail screen. While there may not be a specific entry for portfolio deduction, you may select I have another description item.  Here you can enter a description and dollar amount.