K-1 Line 20 AJ

[Gilgamesch]

My form K-1 has 2 entires in the AJ column. One says Aggregate Business Activity Gross Income and the other says Aggregate Business Activity Total Deductions. I want to know if I should enter both of these in the form for AJ in TurboTax or just one of them. Thanks for any help.

[PatriciaV · Accepted solution]

Yes, you may enter each line separately for Code AJ (Excess Business Loss). However, note that 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). 

See also: IRS Instructions for Form 461 - Limitations on Business Losses

[JustTom]

I'm a bit bewildered by this answer. The two quantities here seem to be very different as one is income and the other is deductions. If using the same general AJ code, it seems like one should be positive and the other negative. However, it really seems like TurboTax should allow us to select the specific descriptions that go with AJ so we can put down exactly what is on our Schedule K-1 supplemental information page. The fact that it probably isn't used doesn't make entering the information with an insufficient descriptor acceptable. Please correct me if I'm not seeing this correctly.

[PatriciaV]

Yes, you are correct. You may enter the amounts for Box 20 Code AJ using the signs that are appropriate - positive for income, negative for deductions. Since the information is not used by the program, more specific entries are not necessary.

The IRS Instructions for Form 1065 Schedule K-1 Box 20 Code AJ do not include a breakdown for this code. The detailed information may be used to complete Form 461 (IRS Instructions for Form 461 - Limitations on Business Losses).