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Level 2
posted Mar 29, 2021 10:23:12 PM

Entering Schedule K-1 Box 20 Code P Information

Hello, 

I have received a K-1 for a long standing investment (in which I have an individual/limited partner/no material participation status), which, for the first time, has a Code P entry in Box 20.  As I understand, this is related to Section 453A(c) Deferred Obligation and I have the partner's share of this obligation which, as per IRS instructions, I think needs to go on Schedule 2, line 8c.  Unfortunately, TurboTax will not let me check the box c and enter anything there. Attempting to do so causes the program to crash. I would appreciate any guidance on how to resolve. Thank you.

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1 Best answer
Level 15
Mar 30, 2021 12:57:34 AM

there is no form associated with this entry so leave it off the k-1 entry otherwise, you'll get an error when trying to submit.

you have to go to the other tax situations 

miscellaneous tax forms

additional taxes and repayments

then continue until you see a line for section 453A(c) - interest on deferred tax from installment sale over $150,000. 

 

2 Replies
Level 15
Mar 30, 2021 12:57:34 AM

there is no form associated with this entry so leave it off the k-1 entry otherwise, you'll get an error when trying to submit.

you have to go to the other tax situations 

miscellaneous tax forms

additional taxes and repayments

then continue until you see a line for section 453A(c) - interest on deferred tax from installment sale over $150,000. 

 

Level 2
Mar 30, 2021 9:55:15 AM

Thank you so much! That resolved it. 

 

Wonder why TurboTax would not link the Box 20/Code P entry from K-1 to this.  There was no error message or anything else while review - I happened to spot that this entry was not taken care of by pure luck, while I was reviewing something else. It took me all the way through audit risk and ready to file taxes without flagging this as a miss. 

 

Thanks again.