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KevinP1
Level 1

K-1 of Partnership with nondeductible expenses

How can I enter non-deductible expenses of an investment club partnership so that they carry over to line 18 of the K-1? They currently show as business expenses, but that's not correct. I'm using TT for Business to complete the Form 1065.

4 Replies
tagteam
Level 15

K-1 of Partnership with nondeductible expenses


@KevinP1 wrote:

How can I enter non-deductible expenses of an investment club partnership so that they carry over to line 18 of the K-1? They currently show as business expenses, but that's not correct. 


You are most likely going to have to enter the total on each K-1 in Forms Mode.

 

Click the Forms icon in the upper right side of the screen, select each K-1, enter "C" for the code and the amount for each partner on Line 18.

KevinP1
Level 1

K-1 of Partnership with nondeductible expenses

Thank you for the quick response. I can do that on the K-1s, but is there a way/need to list the specific expenses (accounting/legal) for the partnership somewhere on the 1065? I couldn't figure where those would go, because if I list them in the "deductions" section, they flow to line 20 (other deductions), which then flows to line 1 of the K-1.

tagteam
Level 15

K-1 of Partnership with nondeductible expenses

@KevinP1 You can actually enter the expenses in the Tax Exempt Income and Nondeductible Expenses Smart Worksheet (page 4-5 of Form 1065) in the program (see screenshot) and they will flow to Line 18 (C code).

 

ne.png

KevinP1
Level 1

K-1 of Partnership with nondeductible expenses

OK. Thanks!

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