Per the IRS Instructions for Schedule K-1 List of Codes and References Used in Schedule K-1 (Form 1065), Box 20 Code AJ is used for Excess business loss limitation.
However, some partnerships choose to use this code to report Aggregate Business Activity Gross Income and Aggregate Business Activity Total Deductions, which together total Excess Business Losses for Form 461.
This information is relevant only if your net losses from all businesses are more than $305,000 ($610,000 if filing a joint return). If this doesn't apply to you, you can leave Box 20 Code AJ blank (or do not include this code).
See also: IRS Instructions for Form 461 - Limitations on Business Losses
I have a Schedule K-1 (Form 1065) with a code AJ in box 20. I also have the 2 pieces of information (Aggregate Business Activity Gross Income, and Aggregate Business Activity Total Deductions) associated with the code AJ. However where in Turbo Tax can I enter these numbers? The software does not ask for these numbers even though I selected AJ from the dropdown box for box 20. Any help will be appreciated. Thank you!
net them but turbotax does not handle excess business loss. you may need to file form 461 - see below
https://www.irs.gov/pub/irs-pdf/i461.pdf instructions
https://www.irs.gov/pub/irs-pdf/f461.pdf form
Who Must File
File Form 461 if you’re a noncorporate taxpayer (including a
trust subject to tax under section 511) and either (i) your net
losses from all of your trades or businesses are more than
$305,000 ($610,000 for taxpayers filing a joint return), or (ii)
you would report a loss of more than $152,500 on any one of
Form 461, lines 1 through 8.