Hello Experts,
I received a Schedule K1 for a real estate investment. Along with the K1, I also received the income statement and balance sheet.
On the K1, in Box 20, I have codes for V, Z and ZZ. For Z and ZZ, the box says see STMT, and I see in the K1 a page calling out the reference to Z and providing QBI income/loss in Column A. However, I do not see anything for ZZ.
Any issues if there is no supplemental information for code ZZ?
There should be more information. You can ask for the info.
Basically it seems that code ZZ is a catch all information that you may need to manually enter somewhere else in your tax return. Most of the common things are more streamlined (e.g. box N goes on schedule XYZ, line M), but some things are rare or too complicated. I have no idea what they might be for you or of it they really matter. For example, I have seen trust k1s (not partnership k1s) where code ZZ is used to report amount of US government interest included in the interest/dividends boxes. That is important because states cannot tax US government interest.
https://www.irs.gov/instructions/i1065sk1#en_US_2023_publink1000128111
Code ZZ. Other. Any other information you may need to file your tax return.