Schedule K-1 (Form 1065) Box 20 Code AH

[Shane15]

My K-1 Box 20 has Code AH with the following description:

Business Interest Expense Limitation Information:

Adjusted Taxable Income $10,555

I don’t know what I am supposed to do with this information. The dollar amount does not seem to be related to any other information on the form. I did not know if this is an additional income for my Maryland tax return? I did not know if I am to do anything with the dollar amount for my 2019 taxes or for my future 2020 taxes. Do you know what this means? In looking at the IRS document “2019 Partner’s Instructions for Schedule K-1” it is still unclear to me what the description means.

Thanks for your help!

[DaveF1006 · Accepted solution]

Read this IRS link  as it explains the limitation on the deduction for business interest expense. Entering this does not affect your tax return. it is telling you that $10,655 business interest cannot be claimed because there is a 163(j) limitation on the deduction for business interest expense? 

 Generally, taxpayers can deduct interest expense paid or accrued in the taxable year.  However, if section 163(j) applies, the amount of deductible business interest expense in a taxable year cannot exceed the sum of:

1. the taxpayer’s business interest income for the year;
2. 30% of the taxpayer’s adjusted taxable income (ATI) for the year; and
3. the taxpayer’s floor plan financing interest expense for the year

[Shane15]

Thanks! From reading the provided link, I think my K-1 was just providing me the calculated value for ATI.  I believe the limitation was not reached, and there is not a carry forward to the next year.

[KathrynG3]

For the Maryland filing, please see these additional resources for more detail:

2019 Maryland Individual Income Tax Preparation

Resident Booklet

Maryland Form 500DM Instructions

[ppumgrad]

I posted a reply but now want to delete it since it was incorrect, but don't know how so am just editing it with this explanation.  I will post a new question instead.  Sorry if I did this wrong.

[brensfirst]

I incorrectly entered an amount on money received from K-1s.  The from will not allow this number to be removed or changed. Please help

[DavidS127]

Click the "magnifying glass Search" icon on the top row, enter "k-1" in the search window and press return or enter, and then click on the "Jump to k-1" link to edit the Schedule K-1 you entered.  By going through the entry screens for that K-1 again, you can make the correction to anything you entered.

If editing the K-1 does not resolve your issue, please provide additional information about the form that cannot be changed.

[THall]

Thanks for your previous response. So, does it have to be entered on the K1, or is for informational purposes only?  Still a little uncertain of what to do with the amount.

[DavidS127]

Yes, for the Form 1065 return you are preparing in TurboTax Business, you will need to enter it as box 20 code AH on the K-1s for each of the partners (their share of that Statement amount), with the same "text" information you were sent for the partnership as a whole. 

Then, each of the partners will use their K-1 box 20 code AH amounts  (i.e., their share of the box 20 code AH amounts for the partnership) in their basis calculations, and any at-risk limitations that apply to their individual tax returns.  If the individual partners indicate that some of their investment is not at-risk, TurboTax will present the questions needed to calculate any at risk-limitations on their individual tax return. 

[Extirpator]

@DavidS127 ,

My K-1 has box 20 codes Z and AH. The worksheet shows a management entity in column A and then three business locations in columns B through D. My understanding is that I will need to create a main schedule K-1 and then (for TurboTax purposes) an additional four K-1s for the pass-through entities.

For code Z, it sounds like on the main K-1 I select the code and I do not put an amount on the main K-1. On the pass-through K-1s, I will not include any other numbers from Part III, boxes 1-19 but will again select code Z and then have the opportunity to provide the additional information (and amounts specific to each entity).

Does code AH work the same way? If so, on the pass-through entity K-1s can I select both box Z and AH and answer the questions related to each entity?

Thanks.

[inviktor]

Hi.

I have a similar problem. I have received this K1 information regarding line 20 code AH, and I dont know how to input this information to Turbotax business:

Schedule K-1, Line 20AH - Additional Supplemental Information

                                             Description

----------------------------------------------------------------------------------

ANALYSIS OF AT RISK VERSUS NOT AT RISK LIABILITIES

                                                     AT RISK                         NOT AT RISK

NONRECOURSE                            0                                 ###,###

QUALIFIED NONRECOURSE      ###,##                             0

RECOURSE                                     0                                        0

Can anybody help?

Thanks!

[Lbeans315]

I need a copy of my 2020 Schedule 1 tax return please

[DoninGA]

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@Lbeans315 wrote:

I need a copy of my 2020 Schedule 1 tax return please

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To access your prior year online tax returns sign onto the TurboTax website with the User ID you used to create the account - https://myturbotax.intuit.com/

Scroll down to the section Your tax returns & documents.  Click on the Year and Click on Download/print return (PDF)

If you used the desktop CD/Download editions installed on your computer, the only copy of your tax data file and any PDF's will be on the computer where the return was created.  TurboTax does not store online any returns completed using the desktop editions.

Or go to this IRS website for free federal tax return transcripts - https://www.irs.gov/individuals/get-transcript

For a fee of $43 you can get a complete federal tax return from the IRS by completing Form 4506 - http://www.irs.gov/pub/irs-pdf/f4506.pdf