K-1 for IEP questions

[tired_of_taxes]

Hi Tax Experts,

I received a K-1 for owning publicly traded shares of IEP in 2023.  This is my first time receiving a K-1 and I am confused about three things:

1) How can I find out if IEP is a Specified Service Trade or Business?  I believe it is based on the underlying businesses.  Does it say somewhere on the K-1? Turbotax asks about this when entering the K-1 info.

2) Box 20Z has a negative amount for Section 199A PTP Income.  Later it says you should have received a "Statement A" with the K-1, but I did not receive any statement, and the K-1 package online does not have it.  Should I enter the same information from Part III of the K-1 ie Box 1 ordinary business income amount?  Boxes 2 and 3 are 0.

3) Turbotax has a page that says "Enter Box 20 Other Information Amounts"  which asks about some Coal projects and has blank description boxes at the bottom.  Is this asking about the Box 20 ZZ entries?  Do I need to enter the descriptions and amounts there?

Appreciate any help.

[PatriciaV · Accepted solution]

1) The Icahn Enterprises website lists several industries, but no service businesses. You may wish to contact IEP investor relations to confirm that it is or is not a Specified Service Business for Section 199A.

2) If the K-1 reports Section 199A PTP income(loss), there should be Statement A in the K-1 package you received. If you are not able to identify this page, contact IEP investor relations to obtain a copy. You won't be able to complete the K-1 entry without it.

3) Yes, the page for Box 20 Other Information is where you enter the detail listed for Code ZZ at the bottom in the blank lines. Descriptions go on the left and amounts in the boxes. Leave the amount box beside Box 20 Code ZZ blank or you will have a forms error.

[tired_of_taxes]

Thank you @PatriciaV  for the reply!  I was able to get the Statement A information.  I have a follow up which I hope you can help with.

IEP is a publicly traded MLP and I had multiple purchases and sales of the security during 2023 in my brokerage account.  These purchases and sales are reported on my 1099-B from my broker and appear on the 8949 statement that turbotax prepares.  Should I enter the purchase and sale information for IEP in the K-1 section as well or will that be duplicative?  The K-1 provides a sales schedule with an adjustment to my cost basis.  Should I adjust the cost basis on the 8949/1099-B for this adjustment?  Just trying to clarify whether this gain/loss goes on the 8949 or the K-1 section (or both) and whether the basis should be adjusted.  

Thanks again!

[MarilynG1]

Yes, you could adjust your Cost Basis on your 1099-B entry according to the sales schedule you received with the K-1.

The 8949 reports capital gain/loss, while your K-1 may report ordinary income as well, so there's some reporting from both documents used in your tax return.   As long as you don't duplicate capital gain on 1099-B in K-1 section, you should be fine.

Everyone's situation is a bit different.

Here's more discussion on Reporting Both K-1 and 1099-B.

[garytries]

I'm probably just worn out at this point but can you help out with the statement on #3:

3) Yes, the page for Box 20 Other Information is where you enter the detail listed for Code ZZ at the bottom in the blank lines. Descriptions go on the left and amounts in the boxes. Leave the amount box beside Box 20 Code ZZ blank or you will have a forms error.

The last two sentences seem to contradict each other.  There are two places in the interview to enter ZZ values. The first is "Enter Box 20 Info" and then later, "Enter Box 20 Other Information Amounts" whee it has all of the gasification questions. Am I supposed to enter it in one place but not the other? K-1's in TT are rather difficult to enter sometimes.