Final K-1 form with amount for box 11 on an attached statement

[KD978]

Hello. I have a Final K-1 form from the attorney on the estate. In lieu of putting an amount in box 11, the attorney typed "A*" and attached a statement including amounts with these descriptions: 

Less: Total Deductions (Form 1041, Line 16)   $xxxx

Deductions in Excess of Income (same amount as $xxxx)

Total Excess Deductions (same amount as $xxxx)

Beneficiary's Percentage   50%

Excess Deductions on Termination   (50% of the amount above)

I have no idea how to enter this on Turbo Tax!

Please help!

[Anonymous_ · Accepted solution]

You might have to contact the attorney if you cannot figure out what your percentage of the deductions happens to be for the purposes of entering that figure into the program.

Another issue is tax reform (the TCJA) virtually eliminated miscellaneous itemized deductions and amounts on Line 11A used to be considered miscellaneous deductions for individual beneficiary(ies). That has now changed, under certain circumstances, and a beneficiary's share is now deductible but entering the figure in TurboTax will require Forms Mode which is only available in the desktop (installed) versions of TurboTax.

[KD978]

Thanks for the advice.

The attorney did indicate that the beneficiary's percentage of the Total Excess Deductions is 50% and calculated that amount at the end of his attached statement. So I'm thinking that is the amount that I should enter in box 11A. Do you agree? 

Also, I see that the IRS instructions for form K-1 specify "Figure the deductions on a separate sheet and attach it to the return." Does that mean I have to print my taxes and file by mail with the attorney's attachment, rather than e-file?

Thanks!

[Anonymous_]

With respect to your first question, yes, if according to your attorney your share is 50%, then that is the amount you should enter.

With respect to the second issue, you should be advised that entering a figure from Line 11A of your K-1 (1041) into the program will not get that figure to the proper line on your return. Per the IRS instructions for Schedule K-1, the figure, in most instances, should be entered on Line 16 of Schedule A.

See https://www.irs.gov/instructions/i1041sk1#idm139897273370240

The only way to get that figure to Line 16 of Schedule A in TurboTax currently would be to use Forms Mode which is only available in the desktop versions of TurboTax. You would then likely have to print and mail your return.

[KD978]

Thanks very much!

I do have the desktop version, so I can look for that line on Schedule A.  However, I will most likely be taking the standard deduction anyway--even adding this amount to our mortgage interest and other deductions doesn't take my husband and I over the standard deduction. Do I even need to bother entering the amount on Schedule A, then? 

[Anonymous_]

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@KD978 wrote:

Do I even need to bother entering the amount on Schedule A, then? 

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No, you do not need to bother with Schedule A if you are planning to take the standard deduction.

[KD978]

Thank you so much for your assistance!