QSB Capital Gain on K-1 Box 11 Code I

[earlyride5372]

I got a K-1 yesterday and Box 11 item I had a gain that is eligible for the 1202 exemption. However, when the gain is recorded on form 8949, Turbo Tax won't let me override columns f,g and h to enter in the adjustment for the exclusion. Why is that? I think that I am able to do this from a 1099B, but my gain was not reported on a 1099B. 

[tagteam · Accepted solution]

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@earlyride5372 wrote:

Turbo Tax won't let me override columns f,g and h to enter in the adjustment for the exclusion.

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Which version of TurboTax are you using and which selections did you make when entering your K-1 (1065)?

I was able to override those columns on Form 8949 in a desktop version of TurboTax (Home & Business). Obviously, you will not be able to e-file your return if you override entries on that form.

[Anonymous]

the gain can't be done through the k-1.  it has to be done through either the 1099-B worksheet (not the 1099b) or the capital gain worksheet.

for 1099-B lines:

1 enter F

4 enter pass-thru from xyz partnership

6a enter gain as sales price

7 enter 0 as cost

18a enter Q to adjusted gain on 1202 exclusion 

18b enter the exclusion amount as a negative number - you'll need to calculate this manually

if you use the capital gain worksheet

Part 1 

1a = no

2a = x

Part II

1c = x

Part III

1= pass-thru from xyz partnership

3a = x

4 = 12/31/2019

5c = from line 11 of k-1 net capital gain qualified for 1202 exclusion 

6f-6i  check the one applicable

Part IV

1a = x

2a = x

3a = x

4a = various (usually just typing v will produce various )

4b = 0

12 a, b, or c check one as applicable  (most likely b) 

if you override an actual form like the 8949 you will not be able to e-file

and TT accuracy guarantee will be void

[earlyride5372]

I am using the Premier Version. The 8949 column f, g and h all claim that one of the data sources is the K-1 worksheet, but I am afraid that is not true.

[Anonymous]

don't enter on the K-1 use either the cap gain wks or the 1099-b wks.  entering on k-1 and one of these worksheets will result in you reporting the same income twice.