K-1 Portfolio Deductions 13AE formerly W

[ericgins]

Does Turbotax keep track of these cumulative non deductible Expenses so when the Investment gets Sold or Liquidated these amounts will be reflected as Tax Basis when determining overall Taxable Gain or Loss?

[Jackstar221]

Hi,

You can enter Box 13, code 13AE, which was formerly 13W within the K-1 into TurboTax. 

Regarding portfolio deductions, those were something that the IRS allowed in the past under IRC Section 67 subject to 2% AGI floor, which is not allowed by the IRS for the current year 2023 tax year.

Here is a helpful article regarding how to enter a K-1 into TurboTax: Where do I enter a Schedule K-1 that I received? 

[ericgins]

Great. Thank you.

Is there a way I can view what this cumulative Non Deductible amount is for any of my K-1s?   I do not recall seeing it anywhere and I did have some Final K-1s which had previous Non Deductible Expense but did not see any adjustments other than the K-1 inform received in that Final Year.

Hopefully you can point me in the right direction.

[Jackstar221]

I apologize, I reviewed this question again. These portfolio deductions were formerly deductible by individuals under IRS Section 67, subject to 2% AGI floor. This rule is not applicable to 2023 tax returns.

I suggest looking through the forms either in TurboTax online-tax tools-then-forms or try to click view tax summary, or you can view the forms in more detail once you pay for the TurboTax online product.

If you use TurboTax desktop, you can view the Forms by looking through the forms mode at the top right hander corner of TurboTax Desktop.

However, if you are not seeing anything regarding a cumulative amount for non-deductible expenses, it is because that portfolio deductions were formerly deductible by Individuals under IRC Section 67 subject to 2% AGI Floor.

[ericgins]

Thank you very much for Clarifying.  I do use the Desktop Version so I will need pay close attention to this and possibly may need to maintain a spreadsheet outside of TurboTax.

[Jackstar221]

You're very welcome, and yes I agree, it is a great idea to maintain a spreadsheet outside of TurboTax to track your K-1 activity.

[Mike9241]

Turbotax does not track basis.