PatriciaV
Expert Alumni

Business & farm

To resolve this, enter the amount from Box 13 Code AE in the K-1 step-by-step interview; don't leave this blank. Only the amount for Code H should be entered if you're prompted to enter additional information.

 

When you enter a value for Box 13 Code AE, the amount should appear on the Miscellaneous Itemized Deductions Worksheet Line 16 (a TurboTax form). Although the deduction is not allowed for federal tax purposes, it may be transferred to your state income tax return.

 

For more info, see the IRS Instructions for Form 1065 Deductions—portfolio income (code AE).

 

@samjowers6 

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