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Level 3
posted Apr 10, 2021 4:05:14 PM

Schedule K-1 Code AE

I am entering K-1 data from one of the LP's. And against Line 20, Code AE (Excess Taxable Income), the Turbo Tax form says

*Not provided for in program. Manually enter on appropriate tax form.

 

Any idea what to do with this entry?

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1 Replies
Expert Alumni
Apr 12, 2021 9:05:19 AM

2020 K-1 (1065) Instructions page 24 states:

 

See Instructions for Form 8990.

 

IRS Form 8990 Limitation on Business Interest Expense under Section 163(j).

 

IRS Form 8990 Instructions states:

 

Use Form 8990 to figure the amount of business interest expense you can deduct and the amount to carry forward to the next year.