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Schedule K-1 Box 13, code R

Babak
Level 1

I have a client filing his personal taxes and he has a schedule K-1 from a partnership he owns with another guy with the amount of $12,000 in Box 13 with a code of R next to it. When I try to enter the info in his personal taxes in ProConnect (under Passthrough K-1's, Partnership info), codes only go to Q and there is no code R. This is the SEP IRA that partnership contributed on behalf of him (a partner). How can I enter this amount in his personal tax return since it could not be deducted from partnership income because it was contributed for a partner?

 

Thanks

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7 Replies 7
PhoebeRoberts
Level 9
Level 9

I believe you enter it in the Adjustments to Income screen, the same as if it were a self-employed person with a SEP. The SEP contribution has no impact on outside basis, so no manual adjustment needed.

Babak
Level 1

Thank you, I tried that but it's not reflected in the form 1040. It doesn't show it anywhere in the tax return.

0 Cheers

did the K-1 show net earnings from self-employment income?  (Box 14)

did the client has self-employment income?

look into the SEP-IRA contribution eligibility requirements.

 

sjrcpa
Level 15

Is there self-employment loss from another source?


ex-AllStar
Babak
Level 1

I checked BOX 14 and is empty but he is an active partner. Just because it's empty does it mean he cannot deduct anything for contributions?

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George4Tacks
Level 15

https://proconnect.intuit.com/community/schedule-k-1/help/partnership-k-1-input-box-13/00/4779 would be helpful, BUT since box 10 is blank, it indicates a problem at the partnership level. https://www.irs.gov/retirement-plans/retirement-plan-faqs-regarding-contributions-what-is-a-partners...

 

Is box 1 positive or negative?

Is box 4a positive? 


ex-AllStar
sjrcpa
Level 15

Sounds like the K-1 is incorrect. The partnership can only make SEP contributions on behalf of partners that have SE income. An active partner should have SE income. (Unless this is a rental real estate thing).


ex-AllStar