K-1 Entry help please

Oma1 — Fri, 17 Apr 2020 13:55:46 GMT

I previously received excellent advice relating to the final K-1 I received, but now am having trouble inputting the various lines into turbo tax and having it show up where it should, as well as concern I am paying too much tax on this transaction. I must be doing something wrong. This is a low income housing tax credit, and it was purchased in 1977 for 80,000; I was already kindly informed that the tax basis is 13,760.80 and sale price 13,760.80 so net 0.

The information is as follows:

Beginning capital account 9,435.14

Current year income 4,325.66

Withdrawals/distributions 13,760.80

Box 2 -2543.32

Box 5 128.34

Box 9C 7350.50

Box 11I 7350.50

Box 13K 609.86

Box 17A -12.94

Box 20 Code Z

Section 199A Income -2,543.32

Section 199A W-2 145.54

Section 199A Unadjusted basis 19,848.23

This is the final K-1; when I input the Box 9C and 11I amount, which seems to be the same dollar item listed twice, it affects the federal tax with an increase EACH time-- is that correct? that it would be two hits even though just one amount, but because it is listed in two boxes? Also, the K-1 specifically states that the 11I amount needs to be in Schedule D, line 12-- but it's not there in the turbotax forms section in Schedule D, line 12. Thanks for taking a look at this and providing any advice you have on what I may be doing wrong.

Re: K-1 Entry help please

DavidS127 — Fri, 17 Apr 2020 15:47:09 GMT

When you enter your box 9 code C amount in TurboTax, on the next screen TurboTax asks if your Section 1250 gain came for the disposition of an interest in a partnership. If you answer yes to that question, TurboTax asks you to enter that amount in a box on the next screen.

Next, when you enter your box 11 code I amount, the next screen asks you to Enter your Code I detail. Check the box for Capital Gain that is not Portfolio Income. When the boxes upon up below that, enter your Code I amount in the Long-Term Gain not Portfolio Info box. When I replicated this, it did not show on line 12 of Schedule D, but it was included in the same total where line 12 goes, so it "ended up in the same place".

The tax amount may change twice as you enter this, as TurboTax gets the "new" information to correctly calculate your tax. In the end, the result is that your gain gets taxed at ordinary income rates, because the gain consisted entirely of Section 1250 depreciation recapture.

Also, you should note that your code 20 box V amounts it is very important to Continue through the K-1 interview after you have entered your code Z for box 20. Enter the code Z when you enter the K-1, but you don't need to enter an amount. Continue, and there is a screen near the end of the interview titled "We need some more information about your 199A income or loss". This screen must be completed in order for your box 20 code Z information to be correctly input into TurboTax.

To get back to the K-1 summary screen and find the Schedule K-1 to edit, 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 find the K-1 you need to edit.

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K-1 Entry help please

Re: K-1 Entry help please