Superfluous Code in K-1 Line 20

[beanorama1]

I've got a draft of our partnership's f1065 filing. The partners' K-1s all have a superfluous "E" code in line 20. (It has no amount.)

Looking it up in the IRS's Partner's Instructions, that code is for "Basis of energy property." I have no idea what I may have done to suggest to TurboTax that it was relevant.

How do I get rid of it?

[ThomasM125]

I think you mean that you made an entry in box 20 for code E and you want to remove that entry. If so, just edit the K-1 entry and when you get to the box 20 entry, click on the down arrow next the code e entry, then move the cursor on the right all the way to the top and you will see the first row is blank, and when you click on the blank entry it will erase the code. Then, delete any number that may be in the column to the right of the entry you just removed.

[beanorama1]

@ThomasM125Thank you for your response. To correct your misapprehension, no, I did not make an entry in box 20 for Code E on the K-1s. That's not possible.

Line 20 codes are not editable on the K-1s. I can't enter, edit or remove them. Following your instructions, having opened both of the K-1s in Form view, there is no "down arrow next to the code e entry." Codes here cannot be changed, added, edited or deleted. This is as I would expect. As TurboTax explains in its "About line 20" pop-up, "This is a fully calculated form. ... The program calculates Schedule K-1 items by multiplying the related item on Schedule K by the partner's year-end profit, loss, or ownership, percentage ... ."

On the Schedule K (Form 1065 p4-5 in Form view), the codes are editable, much like you described with a down arrow I can use to choose various codes. But that's where the problem is. There is no superfluous Code E appearing in Schedule K on the Form 1065. There's no Code E there to edit.

TurboTax has created those superfluous E codes on the K-1s somehow all by itself, somewhere in the process between populating the 1065 Schedule K with the data I entered and calculating the K-1s from it.

I would like to know how to remove these superfluous codes.

[ThomasM125]

Sorry for the misunderstanding, I thought you were working on your personal tax return, entering your K-1 schedule. 

I don't have a copy of the 2021 business program yet, so I can only look on the one from last year. In 2020, there was a code E that was used to report gross receipts used to determine if you could use the cash basis of accounting. The form for 2021 has been modified to only include letters from "a" to "c" however, so that is probably why you don't see the code E.

The items on schedule K are simply divided up among the partners and then entered on the schedule K-1's. So, if you account for the entries on schedule K by matching them to the K-1's you may be able to identify what the code E entry on the K-1 schedule represents.

Also, I suspect that form 1065 has not been finalized yet, so if you do your updates, you may find the issue will resolve itself once the return is complete and ready to be filed.

[beanorama1]

@ThomasM125I had identified that I was using TurboTax Business to draft of our partnership's f1065 filing. I don't know how I could have been more clear.

I'm not understanding how the rest of your reply is related to my question.

Thank you for your time. I'm done. I'll wait to see if TurboTax fixes the error before I have to file.

[beanorama1 · Accepted solution]

Back into TurboTax Business to finalize our 1065 and it seems they saw fit to fix whatever bug/problem/gremlin was causing this problem. Usual bad customer service, as I've come to expect, but it's gone. Good riddance.