Now next question on K1interview is
enter amount from Box 17 code B and then it is giving me 2 options
Adjustment to section 1250 gain
Adjustment to section 1231 gain
section 1250 recapture is part of the 1231gain so if your only income was the k-1 and these were the only lines with #'s, your adjusted gross income would be the 1231 gain not the total of these two lines.
since AMT depreciation is less (a longer life) both the 1250 and 1231 amounts should be different for AMT purposes and 17B should be negative. A positive 17B would make absolutely no sense but then I don't know what has transpired with the partnership over the years. mergers, spinoffs and other events can produce "unusual" tax results.
here's an example that is for illustration purposes only and does not conform to current tax laws. say a building is bought for $100,000 its regular tax life is 20 years while the AMT life is 40 years (AMT lives are the same or longer). so year 1 - $5K of regular depreciation (but only $2,500 of AMT depreciation) so on 17A - AMT depreciation adjustment of a positive $2,500. in year 2 it's sold for $100,000 and no depreciation taken.
the k-1 would reflect both 1250 recapture of $5,000 line 9c and 1231 gain of $5,000 line 10. however for AMT purposes since less depreciation was taken the 1250 recapture and gain should be less for AMT purposes. thus the 17B adjustment should be a negative $2,500 (and shown twice once for 1231 gain and the other for 1250 recapture).
Q. which box to choose and k1 has no information?
What are PASSIVE activity Losses from Last year?
Is this number in Box 1 of k1 (ordinary business income or loss from last year) ? or this is composite number you get once you complete k1 and can be carried over to next year if still own that MLP?
if you used Turbotax last year and had the k-1, any passive losses would have carried over if you did a transfer when starting 2020. passive losses would normally be in part III lines 1,2 or 3. by definition losses on these lines are passive and can not be used to offset passive income. if you did not have the k-1 in prior years enter 0. if you did but didn't use Turbotax you are going to have to total the amount on each line 1, 2 nd 3, TurboTax only allows one of lines 1, 2 or 3 on a k-1 so if you have more than just 1 one of these lines you will have to create a k-1 for each. only if a line is negative after totaling all years do you have a passive loss. what gets complicated is if there are passive amounts of income on other lines such as a passive capital gain reported on line 11) in prior years. a positive amount (income) on would reduce the carryover of passive losses. also if the are amount on line 17 those affect the AMT carryovers from prior years.
What is Statement A in K1? I don't see it in my K1 but TT keep asking me statement A?
look for a supplemental statement oir perhaps the partnership provided all the info in line 20.
I've seen all 3. line 20 amounts, a "supplemental schedule" and "See Schedule A".
