How to enter K-1 1065 Line 20 Code AH - Additional Supplemental Information - Analysis of At Risk versus Not At Risk Liabilities

[ppumgrad]

My K-1 Box 20 has Code AH with "STMT" next to it.  On an attached page, there's an explanation of it, which I copied below (I replaced the actual amount with ###,### for privacy purposes).  The amount represented by  ###,### in the explanation matches the Ending amount of the Nonrecourse Partner's share of liabilities in Part I Box K of the K-1.  How should I enter this Box 20 Code AH info into TurboTax?  Do I even need to add it?  None of the pre-set descriptions on the Box 20 Code AH data entry screen apply to the description in the explanation below.  If I need to enter it into the area at the bottom of the Box 20 Code AH data entry screen used for "Other Descriptions", what would I enter?  Thanks, in advance.

Schedule K-1, Line 20AH - Additional Supplemental Information
                                             Description
----------------------------------------------------------------------------------
ANALYSIS OF AT RISK VERSUS NOT AT RISK LIABILITIES
                                                     AT RISK                         NOT AT RISK
NONRECOURSE                            0                                 ###,###
QUALIFIED NONRECOURSE      0                                       0
RECOURSE                                     0                                        0

[MarilynG1 · Accepted solution]

Just enter your K-1 as shown, with Line 20, Code AH.

You can enter a description in the the 'Other Descriptions' area if you wish, but it will have no affect on your tax return.

Click this link for more info on K-1 Box 20 Codes.

[ppumgrad]

That's what I figured but just wanted to make sure.  Thanks for the info.

[ecomajor]

I have a similar situation, except I have 3 lines on line 20ah, how would I enter this on Turbotax business as it it just says select a code and there is no way to indicate if the amounts are at risk, not at risk, nonrecourse or qualified non recourse

just

[ecomajor]

But how do I differentiate between the line items, how will the irs know what is non recourse and what is qualified non recourse.  If I just enter ah-other information 221 and another entry ah-other information 24307 how will it mean anything?

[Hense]

My K-1, Line 20AH has 6 lines:

1. 20V Average Acquisition Debt: xxxxx

2. 20V Average Adjusted Basis of Debt Financed Property: xxxxxx

3. 20V Gross Income From debt Financed Property: xxxxx

4. 20V Other Deductions Directly Connected: xxxxx

5. 20V S/L Depreciation Directly Connected: xxxx

6. 20V Net Section 1231 Gain (Loss) directly Connected: xxxx

Given that TurboTax only has one line for AH, how do I put these numbers in, along with the right categories? Thank you so much!

[DaveF1006]

You will need to report 6 K1's to report all of this information.

1. Prepare the first K1 in the name of the partnership and report information in all of the boxes, including one AH entry in Box 20.
2. Prepare the other 5 K1's in the name of the partnership but leave all boxes blank except for Box 20. prepare one AH entry in this section.
3. Repeat the same process for the remaining 4 K1's.

[inviktor]

Hi!

I have exactly the same problem as you, but unfortunately after reading the responses, I still don't know what to do. I have almsot the same as you:

Schedule K-1, Line 20AH - Additional Supplemental Information
                                             Description
----------------------------------------------------------------------------------
ANALYSIS OF AT RISK VERSUS NOT AT RISK LIABILITIES
                                                     AT RISK                         NOT AT RISK
NONRECOURSE                            0                                 ###,###
QUALIFIED NONRECOURSE      ###,###                            0
RECOURSE                                     0                                        0

How do I provide this to turbotax? I can only see "Select Code" to "AH - Other information" in the first column, and then "Enter Amount" in the second. What amount do I provide? I have 6 amounts, 3 for at risk, and 3 for not at risk, most of them 0. So I don't know what do. How did you do it?

Thanks,

Best!

[Mike9241]

They are meaningless from a Turbotax standpoint because Turbotax does not calculate tax basis. Calculating tax basis is your responsibility. 

schedule L on your k-1 is supposed to be on the tax basis but the IRS instructions for the k-1 warn that certain liabilities may need to be taken into account and there may be other reasons why it might not be accurate.  

your tax basis can be computed using the worksheet on page 3 of K-1 instructions also read what's in the k-1 instructions for schedule L

https://www.irs.gov/pub/irs-pdf/i1065sk1.pdf 

[inviktor]

Thank you, Mike! Your reply unfortunately doesn't help me. I need help from a CPA to use the Turbotax Business software just for how to input line 20 AH and Z in part III of 1065 form, as that is what I am using. There should be people specialized in using Turbotax Business software and who know how to read a K1 and provide that info to TurboTax Business, and I will try to find somebody.

Thanks!

[Mike9241]

you can upgrade to live for an additional fee if you want personalized help

[inviktor]

Yes, I do have Live. I scheduled a call for Tuesday. Thanks for the help 🙂

[mandrake5]

Did you get any solution after talking to someone? I am also having exactly the same problem and would like to know how this was resolved.

[LM232]

This is a 2022 question but same issue.  I have a K-1 that has numbers in both blocks 1 and 2, and has 9 different line 20 AH values.  In another post the community says I should put in one k-1 for the block 1 data and a separate k-1 for the block 2 data. I have 9 different values for line 20 AH.  Am I now up to entering 18 k-1s in TurboTax to put in the one paper k-1 in front of me?  In 2021 I put in only 2 k-1s and for each on the main line 20 screen I selected 20AH and left the number blank, then on the next screen in the area at the bottom I entered each description for one of the AHs and the number that went with that AH. The program did not kick it back to me when I was done last year.  I prorated every number in both k-1s based upon the ratio of block 1 and block 2. In looking at the program this year, it seems it will let me enter more than one AH value on the main line 20 screen, so I was thinking about doing that and just skipping the descriptions all together.  Which way to I go with this?  18 separate k-1s in TurboTax seems a little crazy.

[PatriciaV]

Yes, if you can enter all the information for Box 20 Code AH on one Schedule K-1 for your return, that would be your best option and less likely to cause scrutiny by the IRS.

You may wish to consult the Instructions for Schedule K-1 (1065), page 19 and following, to confirm that none of the entries for 20AH would require additional forms or disclosure on your return.

@LM232