From the IRS website and its guide to the K-1, Box 20 with a Code L is:
"Code L. Dispositions of property with section 179 deductions.
The partnership will report your share of gain or
loss on the sale, exchange, or other disposition of property for
which a section 179 expense deduction was passed through to
partners with code L. If the partnership passed through a section
179 expense deduction for the property, you must report the
gain or loss and any recapture of the section 179 expense deduction
for the property on your income tax return (see the
Instructions for Form 4797 for details). The partnership will provide
all the following information."
http://www.irs.gov/instructions/i1065sk1/ch02.html#d0e1954
The other place on your K-1 that references Section 179 deductions is Box 12. Do you have an entry for Box 12? If you have nothing entered in either Box 12 or Box 20, let's go into the Step-by-Step view of your return and try to clear any entries for Box 12 or Box 20 before trying again.
- Click on the View tab in the top left corner and select Step-by-Step View.
- Click on the Federal Taxes (the Personal tab if you're in TurboTax Home and Business) tab and then choose Wages & Income (Personal Income in TT H&B).
- Select I'll Choose What I Work On.
- Scroll down to Business Investment and Estate/Trust Income.
- Click on the Schedule K-1 item. Select Yes, you want to work on your return and then choose to Update the K-1 area where you previously worked.
- You'll see your K-1 listed here. Choose to Edit it.
- Continue all the way through the prompts until you see the Check Boxes That Have an Amount screen.
- Do you see Boxes 12 or 20 checked? When you check Boxes 12 and 20 and enter amounts in the prompts screens, try going back and uncheck boxes. You may have to hit the Back button and then clear any amounts in screens related to Boxes 12 and 20. Scroll through all the screens for the K-1 and cleared any amounts as well as any drop down items for the boxes.
- Clearing all reference to Box 20 in the interview should remove any reference that is carried over to the Form.
