topic Re: K1 box 20 code b in Get your taxes done using TurboTax

K1 box 20 code b

cqod — Mon, 30 Mar 2026 17:57:42 GMT

My understanding is these investment management fees are not deductible however the amount listed flows to Schedule A. These are not investment interest expenses

Re: K1 box 20 code b

Mike9241 — Mon, 30 Mar 2026 18:32:15 GMT

Box 20. Other Information
Code A. Investment income. Report this amount on
Form 4952, Part II, line 4a.
Code B. Investment expenses. Report this amount on
Form 4952, Part II, line 5.

in desktop deluxe line 20B was ignored, nothing happened. The amount did not flow to schedule A or ebven the line on the 4952

My understanding is that 20B, just like 20A, are not used by TurboTax. Those income and expenses are listed on other line(s) of the K-1, probably line 13 for 20B

Thus there may be a bug. However, there was an update today so perhaps the issue is fixed.

the line 5 instructions for Form 4952

Line 5
Investment expenses are your allowed (expenses that were subject to the 2% haircut are not allowed expenses such as management fees) deductions, other than
interest expense, directly connected with the production of
investment income. For example, depreciation or depletion
allowed on assets that produce investment income is an
investment expense.
Include investment expenses incurred directly by you or
reported to you on Schedule K-1 from a partnership, or by an S
corporation, but only if you are allowed a deduction on your
return for the expense.
Investment expenses don’t include any deductions used in
determining your income or loss from a passive activity.

Re: K1 box 20 code b

cqod — Mon, 30 Mar 2026 19:20:21 GMT

Thanks for that clarification. It appears box 20 code b does not flow through however box 13 code L (same amount as box 20 code b)does flow to schedule A misc deductions worksheet line 28 which flows to schedule A line 16 still improperly taking the deduction.

Re: K1 box 20 code b

PatriciaV — Thu, 02 Apr 2026 13:52:06 GMT

If there are expenses included in Box 13 Code L that you cannot deduct on Schedule A, your best option is to reduce the amount entered for Code L (to zero if appropriate).