A partner in our partnership called saying they received the following error message after entering the 1065 schedule K1 information related to Code O box 11 (1202 exclusion)
“Check this entry
Sch K-1 Wks Partnerships LL Sch K-1 Partnersip Additional Info 1: Other income fields has no entry. A total of $10,505 has been entered for code (s) I,L to Q and ZZ. Code (s) I,L to Q and ZZ require(s) additional information on the appropriate lines of this section .”
The box 11 has Code O, so the $10,505 is eligible for exclusion for section 1202 gains and is not considered additional or other income. Does this mean the $10,505 should be listed in the K1 from the partnership box 20 as well- if so what code should be used in box 20. I cannot find a relevant code in the IRS instructions. For this particular partner only a portion of the 10,505 is excludable.
The partner is using 2025 desktop TurboTax Home and Business for a macintosh
Thanks for your help!
