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geecubed88_
Returning Member

K-1, Box 20

Hi, I am new to community and finishing up my extended return for 2020. I just got the late K-1 that caused me to extend, and it has an amount in Box 20, AG.  Haven't seen this before.  It is huge ($193,000), yet my income (Boxes 1-3) for this K-1 shows a loss.  I just saw some Q & A from March on this subject about TT not entering the amount in the proper place and even one answer saying I should not enter it at all as it is intended for corporate partners.  Any new advice on this?  Thanks. 

2 Replies
Mike9241
Level 15

K-1, Box 20

Turbotax doesn't use this information because a determination of whether or not IRC 448 is applicable must be determined by the taxpayer for each of the entities in which he has a stake. It requires a C Corp, partnership with a C Corp partner or a tax shelter (which can be a  partnership with no C Corp partner) to use the accrual method of accounting if the entity's average annual gross receipts for a 3 year period ending with the current tax year exceed $25 million.

 

Certain entities must be aggregated to determine if they in total have gross receipts exceeding this threshold.  Certain entities are excludable.  Turbotax is not designed to handle the calculations that may be needed (nor probably most pro software).   

 

you may want to take a look at 448 to see if you (actually entities in which you have a stake might be subject to it). if in doubt you may need to consult with a tax pro.

https://www.law.cornell.edu/uscode/text/26/448 

geecubed88_
Returning Member

K-1, Box 20

Appreciate your reply.

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