Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Form 1065, Schedule K-1, Line 20, Code AA

RogerShadley
Level 2

Does anyone know how Code AA is calculated?

 

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Best Answer

Accepted Solutions
Accountant-Man
Level 13

On a simple 1065 I have, the 199A wages are the same as page 1, line 9.

On a 1120S, mine are lines 7 and 8, page 1.

** I'm still a champion... of the world! Even without The Lounge.

View solution in original post

7 Comments 7
Accountant-Man
Level 13

On a simple 1065 I have, the 199A wages are the same as page 1, line 9.

On a 1120S, mine are lines 7 and 8, page 1.

** I'm still a champion... of the world! Even without The Lounge.
RogerShadley
Level 2

Thank you!

0 Cheers
kenzcpa
Level 2

Line 16 on K-1 output appears to be a tax program error. Numbers are being picked up from Screen #5

(past three years gross receipts) and incorrectly being put on line 16 of certain K-1s. In my case it is always partner # 2 as foreign income.

Thre is NO foreign income or foreign partner- This is a program problem which I have reported several times

Kim
Level 1

I am having the same issue. I hope the next update correct this. I can not send returns out.

0 Cheers
CarolZ
Level 1

As of today, I am having the same issue with line 16.

0 Cheers
kenzcpa
Level 2

The explanation Lacerte gave for this problem does not make sense. They say

it is for a "erosion tax reporting " what is this? This appears to be a software problem and they are not fixing it. If your partners K-1 is a entity, it is picking up 4 lines instead of one!

sch2020
Level 1

Lacerte is following IRS instructions.  See the codes for the K-1 under Box 16 - AA, AB, AC and AD.  If your partnership has a partnership as a member/partner then these will show up on Line 16.  We are just putting a supplemental note on the K-1 to that partner that reads..

 

Box 16 Code AA - AD - Gross receipts per Regulations 1.59A-7(e)(2)

Code AA - Current Year

Code AB - First Preceding year

Code AC - Second preceding year

Code AD - third preceding year

 

 

0 Cheers