What should I do if the description of expenditure on my K-1, Section 59(E)(2) expenditures Box 13, Code J, doesn't match the options available in TurboTax?

Forum|Forum|6 years ago
March 20, 2020
3 replies
2 views

My K-1 description says "Sec 59(E)(2) expenditures from passthrough entities". I didn't receive any other attachments explaining those passthrough entities. TurboTax won't let me move forward unless I select one of the following: circulation expenditures, intangible drilling costs, research and experimental expenditures, mining exploration expenditures, or mining development expenditures.

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Irene2805

Level 15

On an attached statement, the partnership should have told you the type and the amount of qualified expenditures for the section 59(e) election. I suggest contacting whoever issued you the K-1. Otherwise, make an educated guess based on what activities the partnership engages in or the name of the partnership.

mcks2019

Level 2

i was only issued a letter saying that my intangibles were 47500

DaveF1006

Level 15

If you are preparing a business return in Turbo Tax, do the following to enter your intangible drilling expenses.

Go to federal taxes>deductions>business expenses>all other expenses>start
Here you can enter a description and amount for intangible drilling costs
Now you can go to the forms mode and check statement A for each partner. The amount that distributed is the ordinary business income that is a net total of the income and deductions you have already reported in your return.

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mcks2019

Level 2

I can not find where to include my intangible drilling costs on my turnbo tax llc

mcks2019

Level 2

i am filling out my 1065 and there is no place to include intangible drilling costs to get the deduction so it can be passed along to K-1 holders.