Business & farm

The IRS made extensive revisions to the coding for Schedule K-1, including additional codes for many lines. Box 13 Code ZZ requires additional information that can be entered using Forms Mode.

1. Open your return and click the Forms icon in the TurboTax header.
2. In the list of Forms in My Return on the left, scroll down and look for K-1 Partner for the investment you need to work on.
3. Click the form name to open it in the large window.
4. Scroll down to Line 13 and choose "ZZ" from the drop-down box. If you entered this using the Step-by-Step interview, the code may already be entered.
5. Click the QuickZoom box to the right of "QuickZoom to enter additional information for codes R and W to ZZ."
6. This opens Sch K-1 Additional Information.
7. Scroll down to Code W to ZZ, Line 4 Section 754 depreciation.
8. Enter the amount from Code ZZ here. If you right-click the amount and choose "About Section 754 depreciation," the On-Demand Tax Help explains that your entry will be used to reduce income for Box 1.
9. Click Step-by-Step in the header to return to the main screens.

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