K-1 statement showing No Gain

[SensibleandHourly]

Good morning, Community,

Clients came by last night to sign their completed returns with paperwork they had received just that morning about an inheritance disbursement. Two separate Beneficiary 7 K-1 Forms showing income in Line 5 and the same amount as a loss in Section 14. It seemed easy enough but on their Schedule 1, I now only see the income, not the loss. That new income, of course, changed the amount of the return. What am I missing with this form to get the corresponding loss to show? 

Also, interestingly, the firm handling the disbursement only provided the last 4 of their EIN number. Is that common? 

Thank you! Dawn. 

[Just-Lisa-Now-]

what code is box 14?

[SensibleandHourly]

HI LIsa, 

This first one has box 5 at 1,150 and box 14, Code H, at -1150 STMT. 

The second one has box 5 at 3,888, and box 14 has first code E, 1 STMT, followed by code H, -3,888 STMT. 

[taxiowa]

Many things going on here Eh?  You should call executor and get EIN for estate as that is public information and has to be entered.

Box 14 info is mostly cosmetic and adjusts basis or provides other info.  It does not show losses by the estate.  And basis is usually not needed to be tracked in inheritenance cases.

Is the K1 for 2021 or 2022.  And is it final.  Kinda late in year for getting a calendar year K1 from an estate.

[Just-Lisa-Now-]

does the statement give any more information?

I usually see $ in Box 5 that came from a 1099R issued to the trust, Im not sure how that would be reduced for net investment deduction (Code H)

[SensibleandHourly]

Box 1 states interest income, is that what you are looking for? 

[sjrcpa · Accepted solution]

14H means this is a reduction in the income subject to Net Investment Income Tax on Form 8960.

Line 5 is fully taxable income.