What does TT want in the K-3, Enter deduction information, Line 54, col. F, then another col. F?

[jdm88]

Enter deduction information:  On your Schedule K-3, go to Part II, Section 2, Line 54 to fill out the information below.
Then their are fields for each column, but for some reason skipping over column A, and starting with column B, then C, then D, then E, then F, then another F with a different description in parentheses.  But there is only one column F on the K-3, so what does TT want here?
Deduction allocated at individual level - Interest expense (Column F - Sum of lines 39,40,41,42,43)
Deduction allocated at individual level - Other (Column F - Line 54 minus sum of lines 39,40,41,42,43) ?

[AliciaP1 · Accepted solution]

For your tax return information and calculating any potential foreign tax credit, the column a, U.S. Source, information is not used because it is not representing foreign transactions if you are a US-based partner/shareholder.

The calculations for the amount to enter are different, but the column is the same - just different lines.  So, use the column f amounts from your K-3, and for the Interest Expense calculation add lines 39, 40, 41, 42, and 43 and report the total in the box.  For the next box for Other, use the column f amounts from your K-3 and subtract the previously calculated amount from line 54 and enter the result in this box.

For example:  Column f line 39 = $5, 40 = $50, 41 = $1,200, 42 = $3,000, and 43 = $0, the first box (Interest Expense) would be $4,255.

                 And Column f line 54 = $10,000, the second box (Other) would be $5,745 

[jdm88]

Thank you for the reply, but column F is on line 54.  Line 54 has 7 columns, A thru G.  What part of line 54 is used in the calculation?  The entire TT webpage is to enter values from the various columns from line 54.  So, when the calculation says 'line 54', what does that mean?  Again, their are 7 columns on line 54.

[jdm88]

So, line 54, column G is the last column and labeled 'Total'.  Maybe that is the value referenced by 'line 54' in the calculation?

[AliciaP1]

Only use column f for the calculations listed - that's why the line that uses the Line 54 starts with "column f".  

"Deduction allocated at individual level - Other (Column f - Line 54 minus sum of lines 39, 40, 41, 42, 43)"

@jdm88 

[jdm88]

Or, it looks like TT just wants to separate the interest expense from the 'other', non-interest expense, since the lines shown the calculation are all associated with interest expense, whereas line 54 col.F is a tally of lines 25-53.  So I'm guessing it wants the difference between that tally and the sum of the lines listed in parentheses (39-43), which in my case is zero.  That's my best guess.  How can we make something so simple, so complicated.

[jdm88]

OK, I think I get it now.  The TT webpage states at the top in bold letters to use line 54 to enter the following fields, but then when you get down to the col.F info, it's asking for info not necessarily on line 54, but doesn't really explain that, and so that's where the confusion begins.  You're still on the page that clearly states to get the info from line 54, but no, that's not the case any more... now you're supposed to do what's shown in parentheses, getting the sum of values from other lines, and then subtracting that from the actual value on line 54 col.F.

[AliciaP1]

TurboTax lines out the entries to reflect the IRS requirements for reporting your K-3 details.  It is indeed trying to report the deductions for interest separate from deductions for "Other" as the boxes are labeled.

@jdm88