DianeW777
Expert Alumni

Investors & landlords

Yes, you can ignore zero entries if there is not a statement provided with information about those boxes. For example, the Code Z represents the Section 199A deduction (qualified business income deduction or QBID).  This information is usually provided on a separate statement due to the different pieces of information that are required to accompany it. 

 

Another indicator would be an asterisk (*) beside the zero.  Double check all information received with your 1065-K1 before you decide that 'zero' is the correct entry. 

 

There is no need to make entries that are zero.  Any line on the K-1 that is zero does not require you to put an entry for tax purposes.  The point is to report the income, allowable deductions and credits.

 

Once you remove this entries, you should be able to continue to complete your tax return without this experience.

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