1065 K-1 Box 20 AJ Code

[cwosegal]

Turbo Tax, What is the answer?

[wendyle1993]

I have received the following numbers for AJ:

Aggregate Business Activity Gain (Loss) on Dispo. of Property, $31,408

Aggregate Business Activity Gross Income, $188,024

Aggress Business Activity Total Deductions, $55,509

I used the form method to fill in the above details under AJ, and the form automatically calculated and input the sum of the above $274,941. Is this right? What should be the right calculation? Thanks!

[PatriciaV]

Yes, you can enter each amount on a separate line. Be sure deductions are entered as negative numbers.

@siraseranant 

@cwosegal 

@wendyle1993 

[wendyle1993]

Thanks! Is the gain on disposal of property part ($31,408) of the gross income ($188,024), and I should leave out the $31,408, otherwise it will be double counting?

[vegas_man]

I have this exact issue, three numbers Box 20 with code AJ

Is there any solution for this? Leaving the dollar values blank does not prompt for more information on the next step.

[sd2786]

I'm having the same issue. When I select box 20 code AJ and leave the amounts blank there are no follow up questions to input the numbers. Should I just enter the gain as a positive number and the deduction as a negative number?

[grandwave22]

How do the positive gross income and negative deduction amounts affect the Form 461? My loss is over the deduction limit and the AJ amounts don't match my total business loss on line 1 if I add them together (too high) or subtract the deductions (too low).

[PatriciaV]

The recent updates for Schedule K-1 entry removed the additional information section for most boxes and codes. Unless you are using TurboTax for Desktop and can access Forms Mode, there is no option for entering the supplemental information for these codes.

We are not expecting any further updates for K-1 entry before the tax filing date.

This information will be used only if your net losses from all businesses are more than $289,000 ($578,000 if filing a joint return). If this doesn't apply to you, leave Box 20 Code AJ blank (or do not include this code).

If the excess business loss does apply to you, this information will allow you to figure any excess business loss limitation that may apply. See IRS Instructions for Form 461 - Limitations on Business Losses. TurboTax does not include Form 461, which must be attached to your tax return (print and mail).

@wendyle1993 

@vegas_man 

@sd2786 

@grandwave22 

[GmWells]

For the first time, my 2023 K-1 has a Code AJ in Box 17, "Excess Business Loss Limitation."  When I go the Instructions, I have two numbers, "Aggregate Business Activity Gross Income or Gain" ($1,231,930) and "Aggregate Business Activity Deductions" ($1,197,436).  I followed the suggestion of others on this thread and input the Income or Gain as a positive number and the Deductions as a negative number in separate pull-down boxes for Box 17, Code AJ.  Since the difference is a positive $34,494 (and, therefore not a loss), I'm not even sure if I need to do anything.  Also, when I ran the error check, I received no errors.

Unfortunately, I'm just making a wild guess, since TurboTax 2023 provides no help or information.

Reading "between the lines" it looks like TurboTax Experts would agree that I am on the right track--true?  Do I even have to input any numbers from my K-1?

Thanks for your help.

[GmWells]

Could I get a TurboTax tax espert to review my quesiton?

[PatriciaV]

Yes, you are correct. While you don't need to report the excess business loss if it doesn't apply to you, there is no harm in including the information on your return.

@GmWells 

[GmWells]

Thanks!

[youssef190]

How did you solve the  the income / deduction issue if you don't mind me asking?

[dterroba]

Great posts, I'm hoping someone could give me a bit more guidance on entering my K-1 box 20 Code Z and AJ. I'm using the TurboTax Home and Business desktop, box 20 of the K-1 shows Z *STMT and AJ *STMT. I attached a pic of the K-1, how do you enter it in TT software? Do you create a line for each one? For the deduction do I enter it as a negative? I appreciate the help. 

Best,
David

[youssef190]

I am having the same issue wit AJ. For the Z, you would need to select it for Box 20 and leave the amount blank and once you click continue and move further, Turbo Tax will tell you that you have 199A and give you the option to select the boxes that are applicable and you enter the amount associated with each. Still hoping someone can help us with AJ