Schedule K-1 Form 1065

user17722233565 · ‎March 27, 2026

Hello,

I'm using Turbotax Premier 2025 to enter Schedule K-1 for Partnership Form 1065.

- Line 16 is checked off and schedule K-3 is provided. If all the income is from US and there are no foreign taxes, can I just leave it blank? TT says I can but I want another opinion.

- Box 20

code U - I have a statement with "Goodwill" description and original basis, accumulated depreciation and remaining basis. What exactly do I enter here?

code AJ - I have a statement with aggregate business activity gross income amount and aggregate business activity deduction. What do I do here? TT doesn't support the form 461. Can I skip it if ?

Thank You for all your help.

Mike9241

TurboTax does not handle line 20U. You're on your own, but here are the instructions from the 2025 1065 K-1

Section 743(b) adjustments. If the partnership reports a section 743(b) adjustment to partnership items, report these adjustments as separate items on Form 1040 or 1040-SR in accordance with the reporting instructions for the partnership item being adjusted. A section 743(b) adjustment increases or decreases your share of income, deduction, gain, or loss for a partnership item. For example, if the partnership reports a section 743(b) adjustment to depreciation for property used in its trade or business, report the adjustment on Schedule E (Form 1040), line 28, in accordance with the instructions for box 1 of Schedule K-1.

Code AJ. Excess business loss limitation. If the partnership has deductions attributable to a business activity, it’ll provide a statement showing your distributive share of the aggregate gross income or gain, and aggregate deductions, from the business activity of all the partnership’s trades or businesses. You can use this, along with other information, to figure any excess business loss limitation that may apply. See section 461(l) and Form 461 and its instructions for details.

read the 461 instructions of who must file

https://www.irs.gov/pub/irs-pdf/i461.pdf

View solution in original post

Mike9241

TurboTax does not handle line 20U. You're on your own, but here are the instructions from the 2025 1065 K-1

Section 743(b) adjustments. If the partnership reports a section 743(b) adjustment to partnership items, report these adjustments as separate items on Form 1040 or 1040-SR in accordance with the reporting instructions for the partnership item being adjusted. A section 743(b) adjustment increases or decreases your share of income, deduction, gain, or loss for a partnership item. For example, if the partnership reports a section 743(b) adjustment to depreciation for property used in its trade or business, report the adjustment on Schedule E (Form 1040), line 28, in accordance with the instructions for box 1 of Schedule K-1.

Code AJ. Excess business loss limitation. If the partnership has deductions attributable to a business activity, it’ll provide a statement showing your distributive share of the aggregate gross income or gain, and aggregate deductions, from the business activity of all the partnership’s trades or businesses. You can use this, along with other information, to figure any excess business loss limitation that may apply. See section 461(l) and Form 461 and its instructions for details.

read the 461 instructions of who must file

https://www.irs.gov/pub/irs-pdf/i461.pdf