I have three items on the K-1 I need help/clarifications:
(1) Income under line 11, code A, has four different items:
a) IRC Sec 988 gain/loss
b) Other income/loss
c) Subpart F Income
d) Swap income/loss
these would probably need to be entered on the k-1 as other. Turbotax does not know where to carry these items in to the return, they properly belong on Schedule 1 line 8z
(2) Income under line 11, code I, has one item:
a) Other income
there are 6 categories for this in Turbotax. where it should be reported depends on what it is since it could be reported on schedule 1, form 4797, schedule D or other forms
if really other then likely schedule 1 line 8z
(3) Deductions under line 13, code W
a) Portfolio deductions
Some deductions under line 13, code W as "Other portfolio deductions"
unless you have a state income tax that allows these deductions don't bother entering them. these expenses are no longer deductible (through 2025) for individuals though they do reduce your tax basis
Question 1: This is an investment (non trader) fund. I assume I should enter "No" for material participation. Is that correct?
correct
Question 2: For 11 Code A, should I check the box that says "other portfolio income(loss) to be reported in schedule E, page 2"?
see above but generally, this income is reported on schedule 1 line 8
Question 3: For 11 Code I, should I check the box that says "other non-passive portfolio income(loss) to be reported in schedule E, page 2"?
see above
That seems wrong as it is passive. However, if I enter it in "another descriptive item", it doesn't seem to feed through to the 1040 and end up being an untaxed income
you are correct Turbotax can't handle these lines and states (*) that these may need to be entered on other forms
having said all that in some cases it won't matter (your taxes will be exactly the same) if you enter those items so they flow to scheduke e page 2, but it seems the IRSs wants them on schedule 1.
