Detail? My K-1, #13, entry is listed as code "W". Detail supplied description says "specially allocated depreciation" w/ a note saying it's book based, check "Misc ?"

[IreneS]

As I'm sure you noticed "specially allocated depreciation" (SAD) is not one of the choices when entering "Code W detail."  Since it is listed as a deduction, if you select Section 754 depreciation, it will subtract the amount from the portion of income allocated to you.  To do this:

1. Click on Federal > Wages & Income
2. In the S-Corps, Partnerships, and Trusts section click on the box next to Schedule K-1.  [Screenshot #1, below.]
3. Click Yes on the next screen, Did you receive any Schedules K-1?
4. On the Tell Us About Your Schedules K-1 screen.  Click on the Start/Update box next to the type of entity (partnership, S-corporation, or trust/estate) that issued the K-1.   [Screenshot #2]
5. If you have already entered K-1 information, you will see a Summary screen.  Click Edit to continue with the existing form entry.  [Screenshot #3]
6. If you haven't started entering K-1 information, continue through the screens, entering the requested information.
7. On the Enter Box 13 Info screen, enter the amount and select Code W - other deductions.
8. On the next screen, Enter Code W Detail, mark the box for Section 754 depreciation and enter the amount listed on your K-1 and click Continue.  [Screenshot #4]

[jaychow38]

TurboTax ask me to enter Code W Detail about Box 13 in K-1 Form. TurboTax give me the options below to choose. But I don't know which one to choose. Could you tell where I can find the info from my K-1 form? Btw, the it is $0 for the code W.

TurboTax list down the options below for me to choose:

1) Early Withdrawal Penalty

2) Inverstment Interest Expenses

3) Miscellaneous Itemized Deductions

4) Nonpassive Deductions to be Reported on Schedule E, Page 2

5) Section 754 Depreciation

6) Taxes and State Income Tax Withheld

7) I Have Another Description Item

Thx!

[ToddL99]

Leave the Box 13 line blank - no code or amount.

if the amount reported in Box 13, Code W is "0", then don't make an entry for this item - there is nothing to report.

If there were a material amount reported in Box 13, Code W, then select "5) Section 754 Depreciation" (this is "specially allocated depreciation").  A section 754 depreciation adjustment reported on the supplemental information page of a K-1 does not usually need to be reported anywhere on the individual tax return.

See Entering a Section 754 or 743(b) adjustment on an individual return for additional information.

@jaychow38

[jaychow38]

Thanks for the great answer. Since the amount is $0, i really can't think of any reason i should insert the code W in Box 13 when I enter info into TurboTax. That only create more problem for me. Thx!

[Nrouhani1]

when i enter section 754 depreciation code w on line 13 of k1 it has no impact on my taxes but when i deduct the figure form line 2 of k1 it does. shoudl i go ahead and deduct it form line 2 of k1 form rather than showing it on line 13

[Nrouhani1]

i dont see reference to partnership or state when i click on wages and income to get to line 13 code w

[Nrouhani1]

PROBLEM IS when i enter code W for line 13 of form 1065 k-1. figure has no impact on my taxes. it seems line 13 code W is not working properly. anyone had experience this?

[Nrouhani1]

i have an amount on line 13 code W which is for section 754 depreciation but when i enter that amount on line 13 it has n o impact on my taxes . where as it should reduce my taxes any one knows why? i keep deducting it from line 2 of k-1 ratehr than putting it on lne 13.

[Mike9241]

is it a passive activity? if so you may be subject to passive loss limitation. look at form 8582