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Business & farm
If your business income exceeds business deductions from all sources, you have no excess business loss. The information from the K-1 wouldn't be applicable.
Here's a work-around for 1065 Schedule K-1 that allows you to enter the information but avoid the form error:
In the Schedule K-1 interview, choose Box 20 Code ZZ instead of AJ. Continue until you see "Enter Other Information Detail." Enter two lines: Label one line "AJ - Aggregate Business Income" with the number from Box 20 additional information and the second "AJ - Aggregate Business Deductions" (usually a negative number).
Your entries appear on the K-1 worksheet under Box 20 Code AJ to ZZ Line 6.
You can use the same work-around for a 1120S K-1 with Box 17 Code AG.
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March 12, 2024
8:10 AM