Schedule K-1 Box 17 code N: Deferred Obligation

[bjmatusz]

When filling out my K-1, Box 17 Code N, Turbo Tax displays the following screen:

Follow these instructions to enter $$$$ shown as Code N Box 17 of the XXXX Schedule K-1

1.  Read the instructions on K-1

2.  Select Tax Tools in the toolbar.  Next, select Tools, then Topic Search.  Enter the specific topic included in your K-1 instructions in the search field

3.  Select other taxes and enter $$$$ in the other tax field.  Then select "Continue"

4.  In the next screen, titled Describe the Other Tax, enter 453A(c) in the field.  We'll take care of the rest.

I have a deferred obligation from the sale of a company that has not been paid yet.  Topic Search does not have any topic for "deferred obligation" or "453A(c)".

The problem is that I cannot locate the screen in step #3 that has "other taxes" to enter the dollar amount.  There is no screen where I can enter "453A(c)" as indicated in step #4.  I'm stuck at this point and cannot go further.

How do I locate the proper screen to account for this?  Following the on-screen instructions doesn't lead me to the proper screen that I need.

Thanks!!

[Cindy4]

Hi @bjmatusz !

Please go to the magnifying class and search "other taxes" and select "Jump to other taxes" .

 You should see the Section 453A(c) box about 3/4 of the way down.

Hope this helps!

Cindy

[Cindy4]

[bjmatusz]

Thanks Cindy4, however, I'm not sure that applies in my case.  That field seems to want the interest due from the installment sale.

Interest on Deferred Tax From the Installment Sale Over $150,000
(Section 453A(c))

What I have in Box 17 is the actual deferred obligation amount still owed to me from the sale of a company in 2021.  If I add in that amount to the line item above, it seems to be treated as the total amount of interest due and not money still owed.

[Cindy4]

According to this IRS direction, it seem you have to calculate the interest amount yourself as highlighted here when you open this link:

https://www.irs.gov/instructions/i1120ssk#en_US_2022_publink100049506:~:text=Code%20N.%20Section%204....

[Cindy4]

Did you receive a form 6252 along with the K-1?

[bjmatusz]

Yes, I did receive Form 6252

[Cindy4]

Wonderful!  You can use the form and follow the steps provided by the IRS here to determine the amount:

https://www.irs.gov/publications/p537#:~:text=Section%20453A%20Example,Under%20Section%20453A