Transferring K-1 Values To Schedule D

[kurttodoroff]

I owned three businesses from 2001 to 2021.

I performed the weekly/monthly/annual accounting tasks.  My CPA prepared the end of year business returns.

I prepared my personal tax returns, once I received the three K-1s from him.

For 2021, one of three K-1s contains an entry (box 17, code AD) which should be transferred to form 8949, then, to Schedule D.  TurboTax is not transferring this entry to form 8949, nor, have I found any provisions to enter this data in EasyStep.  TurboTax will not allow a manual entry to either form 8949 or Schedule D, unless I select the override feature, which precludes electronic filing, and, coverage by the 100% accurate calculation guarantee.

Is there a method to provide this data to form 8949 or Schedule D?

Thank you.

Regards,

Kurt

[PatriciaV]

Schedule K-1 Box 17 Code AD is not processed by TurboTax. You must enter the information for this investment sale in the appropriate section of Federal income.

Form 8949 is used to report an investment sale other than from a brokerage account (Form 1099-B). Follow the steps below to enter this information in TurboTax.

• Click on Federal Taxes (Personal if using Self-Employed)
• Click on Wages and Income (Personal Income if using Self-Employed)
• Click Continue
• Click on "I'll choose what I work on" (if shown)
• Scroll down to Investment Income
• Beside Stocks, Mutual Funds, Bonds, Other, click Start/Update button

On the next screen, click Yes to continue

On the next screen, click No, you did not receive Form 1099-B

On the next screen, choose the option that pertains to the type of investment sale you are reporting and follow the prompts to enter the supplemental information provided with Schedule K-1.

[kurttodoroff]

Dear, PatriciaV.

Thank you for you response.

I performed the procedures that you provided, successfully.

That being said, the accountant has advised me to make a net operating loss entry in the tax return.  I searched for NOL and net operating loss in TurboTax.  In both search cases, TurboTax produced the following:

This reflects 2020.  Does TurboTax provide a NOL entry for 2021?

Thank you.

Regards,

Kurt

[MarilynG1]

No, TurboTax does not calculate current year NOL, which requires an IRS worksheet to be attached to your return.

You can enter a prior year NOL carryover (as you see from the 2020 NOL entry field). 

Per Expert DianeW777:

"When a net operating loss (NOL) is initially entered TurboTax will incorporate that into the current tax return once you have completed the NOL worksheet(s).  It will also know if any of the NOL was used on your tax return.  What TurboTax will not do is to calculate an NOL.

• IRS Publication 536

When this initially occurred, then the NOL worksheet was required to be prepared and depending on the year, you had an option to carryforward or were required to carry it back. 

The NOL must still be calculated and entered into TurboTax each year. Use the IRS publication to access the worksheets.

Waiving the Carryback Period

You can choose not to carry back your NOL. If you make this choice, then you can carry your NOL forward indefinitely until it is fully absorbed.

To make this choice, attach a statement to your original return filed by the due date (including extensions) for the NOL year. This statement must show that you are choosing to waive the carryback period under section 172(b).

If you filed your original return on time but did not file the statement with it, you can make this choice on an amended return filed within 6 months of the due date of the return (excluding extensions). Attach a statement to your amended return, and write "Filed pursuant to section 301.9100-2" at the top of the statement.

Once you choose to waive the carryback period, it is generally irrevocable. If you choose to waive the carryback period for more than one NOL, you must make a separate choice and attach a separate statement for each NOL year.

In 2017, TCJA changed the NOL rules by:

1. limiting NOL deductions to 80% of taxable income,
2. disallowing NOL carrybacks, and
3. lifting the 20-year limit on NOL carryovers.

In 2020, the CARES Act temporarily – and retroactively – changed the NOL rules again.

More information can be found in the IRS publication linked above."