Should expense/deduction items in a partnership K-1 (listed as positive numbers) be entered into TurboTax as negative numbers?

[jgkolek]

I have a partnership Schedule K-1 (Form 1065) which has several lines that list a combination of income items and expense items.  All of the numbers, regardless of whether they are income or expenses/deductions, are listed as positive numbers in the K-1 sent to me by the partnership.  For example line 16D and 16E both are identified as income items, and have positive numbers listed (as expected).  But line 16G is listed as an interest expense, which would normally be a deduction, but it is also listed as a positive number.  I see the same issue for entries for line 20 (20A is income, 20B is an expense, but both are listed as positive numbers).  Should the expense and/or deduction items be entered into TurboTax as negative numbers?

[PatriciaV · Accepted solution]

Enter the numbers from Schedule K-1 as they appear. Certain boxes and codes are designated as normally negative (expenses or deductions) even though the entry has no leading dash. The information will be reported correctly in the appropriate area of your return.

[jgkolek]

That makes sense, but I'm still dubious that the codes are consistent.  Line 20V is coded as income.  I have a supporting statement that lists 20V1 thru 20V10 as income or gain.  However, 20V11 is listed as an interest expense, 20V12 is listed as section 59(E)(2) expenditures, and 20V13 is listed as foreign taxes paid or accrued.  20V11 thru 20V13 seem to be expense items, even though 20V is identified as an income line.