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

Why do I have amounts in box 16 on my K-1 when I have no foreign activity

SusanA1
Level 2
 
0 Cheers

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

4 Comments 4
itonewbie
Level 15

I see that you're preparing a 1065 for 2020.  Those codes for Line 16 are related to BEAT and its new reporting requirements.  If it does not apply to your client, you will need to override those on the following screens:

  • Code AA: Screen 22, under the Foreign Transactions section, on the line for Gross receipts per Reg. 1.59A-7(e)(2) [O], enter -1 (yes, negative one);
  • Codes AB, AC, and AD: Screen 32.1, on the screen for the partner whose K-1 is showing an amount, scroll down to the header Gross Receipts per Regulations 1.59A-7(e)(2) [Override], and enter -1 (negative one) on each of the 3 lines.
---------------------------------------------------------------------------------
Still an AllStar
SusanA1
Level 2

Thank you for your response.  After doing more reading about the BEAT and the reporting requirements I was planning on leaving the amounts in Box 16.  The amounts are showing up on the K-1's for LLC's or other partnerships that are partners of the partnership I am working on.  On most of these, I have no idea if the BEAT would apply or not.  Is there a downside to leaving them on the K-1?

0 Cheers
nholevas
Level 1

Have you gotten a response as to why that shows up? I have the same issue in my proconnect

0 Cheers
Love2Cruise
Level 4

I have ProSeries Basic, which doesn't automatically generate the numbers when entering the K-1 information. All of it has to be manually entered. Can I just omit the information on line 16 if it doesn't apply to my client?

0 Cheers