Code W Schedule K-1 (Form 1065) line 6 exceeds code W total

Forum|Forum|4 years ago
April 14, 2022
1 reply
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The form 1065 K-1 is aggregating investment expense in lines 7 and other nonpassive deductions in line 6. I had this problem several years ago - is the solution to remove the amount in line 6 (enter as 0) and instead enter in that amount as a separate investment interest expense under deductions / credit with the same title? It won't let me e-file my taxes otherwise.

PatriciaV

Level 15

Yes, your solution seems to be the best option. You are reporting the expenses on a different line, but the description will be the same.

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aE17_2Author

Level 4

That did the trick for federal and e-file but my state (NY) return payment went up by quite a lot. Any thoughts and more importantly, how to fix?

PatriciaV

Level 15

You may need to adjust how this expense is reported on your State return. On the page "You just finished your New York return," choose the topic "Changes to Federal Income."

Review the topics under "Investment adjustments," "Other changes..." and "Partner, shareholder, and beneficiary adjustments" to see if any of the available boxes/codes apply. If you aren't able to make the adjustment here, you may need to go over New York again.

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