This article will help you report partnership Schedule K-1, Line 13, codes T, U, and V, Domestic Production Activity in the individual module.
To enter Line 13, codes T, U, and V:
- Go to Screen 20, Passthrough K-1's.
- Select Partnership Information from the left menu.
- Scroll down to the Line 13 - Other Deductions section.
- Locate the All Domestic Production Activities Information subsection.
- Complete the following fields, if applicable, from the K-1 received for Line 13, code T:
- 1= apply small business simplified overall method, 2= simplified deduction method
- Domestic production gross receipts
- Gross receipts from all sources
- Cost of goods sold allocable to DPGR
- Cost of goods sold from all sources
- Total deductions and losses directly allocable to DPGR
- Total deductions and losses directly allocable to non-DPGR class of income
- Other deductions and losses not directly allocable to DPGR or another class of income
- Form W-2 wages
- Enter the Qualified production activities income.
- Enter the Employers W-2 wages.
- If both entries from Step 6 and 7 are not made, a diagnostic will generate.
Form 8903 instructions indicate that if you use the small business simplified overall method or the simplified deduction method, you must use it for all activities, for example, Schedule C, Schedule F, and other K-1 activities.