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posted Jun 5, 2019 10:29:31 PM

Schedule K-1, Line 14, Code H is showing a negative number that offsets the amount shown in Box 5. This doesn't reduce my liability. Why?

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Level 15
Jun 5, 2019 10:29:31 PM

"This doesn't reduce my liability."

Most likely because you are not subject to the Net Investment Income Tax (NIIT). The negative figure on Line 14 (H Code) only serves to reduce the NIIT calculation on Form 8960, otherwise it has no real impact.

See https://www.irs.gov/individuals/net-investment-income-tax

1 Replies
Level 15
Jun 5, 2019 10:29:31 PM

"This doesn't reduce my liability."

Most likely because you are not subject to the Net Investment Income Tax (NIIT). The negative figure on Line 14 (H Code) only serves to reduce the NIIT calculation on Form 8960, otherwise it has no real impact.

See https://www.irs.gov/individuals/net-investment-income-tax