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Level 2
posted Sep 27, 2023 12:04:40 PM

K-1 box 13

The K-1 box 13 has $171 with code W.    The explanation for line 13W is showing trader expenses.    Should I checking off nonpassive deduction to be reported on schedule E, page 2?    If so, do I need to enter this under schedule E or will Turbotax do it?

0 2 447
2 Replies
Level 3
Sep 27, 2023 12:23:14 PM

TurboTax doesn't have a specific entry field for Box 13, code W, since this box is used for various other deductions. The firm who prepared the partner's K-1 should have included a description of what the deductions are, and instructions on how to report the deductions on the partner's individual return. Refer to the Partners instructions for Schedule K-1 for Schedule K-1 for a complete list of deductions that may be reported in Box 13 with code W.

 

Enter the amount for Box 13 with Code W as it appears on the K-1.  After the entry screen you will a screen asking for details of the expense. But If the line item represents miscellaneous itemized deductions (which is likely), those deductions were eliminated by tax reform (the TCJA) and will not appear anywhere. 

Level 3
Sep 27, 2023 12:36:35 PM

Let me add to my answer above, Investment expense was claimed as an itemized deduction on Schedule A, not Schedule E (Form 1040) prior to the TCJA.