PatriciaV
Expert Alumni

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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