ProConnect HelpIntuit HelpIntuit

Entering partnership Schedule K-1, line 13 codes in the Individual module

SOLVEDby IntuitLacerte Tax63Updated February 24, 2022

Click on the various codes below relating to a partnership Schedule K-1, line/box 13 for instructions on where to enter them in the Individual module of Lacerte.

  1. Go to Screen 20, Passthrough K-1's.
  2. Select the Partnership from the left navigation panel.
  3. Scroll down to the Line 13 - Other Deductions section.
  4. Locate the Line 13 - Other deductions subsection table.
  5. Click in the K-1 Code column and select the dropdown arrow.
  6. Select A - Cash contributions (60%).
  7. Enter the Amount.
  1. Go to Screen 20, Passthrough K-1's.
  2. Select the Partnership from the left navigation panel.
  3. Scroll down to the Line 13 - Other Deductions section.
  4. Locate the Line 13 - Other deductions subsection table.
  5. Click in the K-1 Code column and select the dropdown arrow.
  6. Select B - Cash contributions (30%).
  7. Enter the Amount.
  1. Go to Screen 20, Passthrough K-1's.
  2. Select the Partnership from the left navigation panel.
  3. Scroll down to the Line 13 - Other Deductions section.
  4. Locate the Line 13 - Other deductions subsection table.
  5. Click in the K-1 Code column and select the dropdown arrow.
  6. Select D - Noncash contributions (30%).
  7. Enter the Amount.
  1. Go to Screen 20, Passthrough K-1's.
  2. Select the Partnership from the left navigation panel.
  3. Scroll down to the Line 13 - Other Deductions section.
  4. Locate the Line 13 - Other deductions subsection table.
  5. Click in the K-1 Code column and select the dropdown arrow.
  6. Select E - Capital gain property to a 50% organization (30%).
  7. Enter the Amount.
  1. Go to Screen 20, Passthrough K-1's.
  2. Select the Partnership from the left navigation panel.
  3. Scroll down to the Line 13 - Other Deductions section.
  4. Locate the Line 13 - Other deductions subsection table.
  5. Click in the K-1 Code column and select the dropdown arrow.
  6. Select F - Capital gain property (20%).
  7. Enter the Amount.
  1. Go to Screen 20, Passthrough K-1's.
  2. Select the Partnership from the left navigation panel.
  3. Scroll down to the Line 13 - Other Deductions section.
  4. Locate the Line 13 - Other deductions subsection table.
  5. Check the box labeled (13G) qualified farmer or rancher.
  6. Click in the K-1 Code column and select the dropdown arrow.
  7. Select G - Contributions (100%).
  8. Enter the Amount.
  1. Go to Screen 20, Passthrough K-1's.
  2. Select the Partnership from the left navigation panel.
  3. Scroll down to the Line 13 - Other Deductions section.
  4. Locate the (H) Interest Expense subsection.
  5. Enter the (13H) Investment - Schedule A field.
    • Enter the interest expense on investment debts from Schedule K-1. Lacerte will include the amount on Form 4952, line 1 and carries the allowed portion to Schedule A.
  6. Enter the Investment - Schedule E field.
    • Enter the interest expense on investment debts from Schedule K-1 to be reported on Schedule E, page 2. An entry in this field is deducted on Schedule E, page 2, and is included on Form 4952, line 1. Any amount disallowed on Form 4952 is added back to income on Form 1040, line 8 as Other Income.
  7. Enter the Passive field.
    • Enter the interest expense on investment debts from Schedule K-1. Lacerte reduces ordinary income by this amount or adds this amount to ordinary loss and carries it to Form 8582. The program doesn't carry this amount to Form 4952. It will include the allowed portion in the allowable gain (loss) on Schedule E, page 2.
  1. Go to Screen 20, Passthrough K-1's.
  2. Select the Partnership from the left navigation panel.
  3. Scroll down to the Line 13 - Other Deductions section.
  4. Locate the Line 13 - Other deductions subsection table.
  5. Click in the K-1 Code column and select the dropdown arrow.
  6. Select I - Deductions - royalty income.
  7. Enter the Amount.

Refer to this article for instructions on entering Schedule K-1, line 13, code J in the program.

  1. Go to Screen 20, Passthrough K-1's.
  2. Select the Partnership from the left navigation panel.
  3. Scroll down to the Line 13 - Other Deductions section.
  4. Locate the Line 13 - Other deductions subsection table.
  5. Click in the K-1 Code column and select the dropdown arrow.
  6. Select K - Deductions - Excess business interest expense.
  7. Enter the Amount.
  1. Go to Screen 20, Passthrough K-1's.
  2. Select the Partnership from the left navigation panel.
  3. Scroll down to the Line 13 - Other Deductions section.
  4. Locate the Line 13 - Other deductions subsection table.
  5. Click in the K-1 Code column and select the dropdown arrow.
  6. Select L - Deductions - portfolio (other).
  7. Enter the Amount.
  1. Go to Screen 20, Passthrough K-1's.
  2. Select the Partnership from the left navigation panel.
  3. Scroll down to the Line 13 - Other Deductions section.
  4. Locate the Line 13 - Other deductions subsection table.
  5. Click in the K-1 Code column and select the drop down arrow.
  6. Select M - Amounts paid for medical insurance.
  7. Enter the Amount.
  1. Go to Screen 20, Passthrough K-1's.
  2. Select the Partnership from the left navigation panel.
  3. Scroll down to the Separately Stated Income and Deductions section.
    • If the deduction is passive:
      • Locate the First Passive Item subsection.
      • Hold down Ctrl+E on your keyboard in Other (Ctrl+E).
      • Enter the Description.
      • Enter the Amount as a negative number.
      • Click OK.
    • If the deduction is nonpassive:
      • Hold down Ctrl+E on your keyboard in Other nonpassive items (Ctrl+E).
      • Enter the Description.
      • Enter the Amount as a negative number.
      • Click OK.
 

Per the partner instructions, if the benefits exceed $5,250, you may be able to use the excess amount in computing Form 8863. Enter any amount in excess of $5,250 on Screen 38.1 Education Credits / Tuition Deduction.

  1. Go to Screen 20, Passthrough K-1's.
  2. Select the Partnership from the left navigation panel.
  3. Scroll down to the Line 13 - Other Deductions section.
  4. Locate the Line 13 - Other deductions subsection table.
  5. Click in the K-1 Code column and select the dropdown arrow.
  6. Select O - Dependent care benefits.
  7. Enter the Amount.

To apply Dependent Care Benefits to Form 2441:

  1. Go to Screen 33.1, Dependent Care Credit (2441)
  2. Select General Information from the left navigation panel.
  3. Enter the amount in the Sole proprietorship or partnership field.

According to the Partnership Schedule K-1 instructions, the client may be able to deduct these expenses currently or may need to capitalize them under section 263A. Refer to IRS Pub. 225, and reg. section 1.263A-4 for more information.

You'll need to determine if the amount can be expensed or needs to be capitalized. If you determine the amount can be expensed and want the amount to show on the Schedule E, pg 2:

  1. Go to Screen 20, Passthrough K-1's.
  2. Select the Partnership from the left navigation panel.
  3. Scroll down to the Separately Stated Income and Deductions section.
    • If the deduction is passive:
      • Locate the First Passive Item subsection.
      • Hold down Ctrl+E on your keyboard in Other (Ctrl+E).
      • Enter the Description.
      • Enter the Amount as a negative number.
      • Click OK.
    • If the deduction is nonpassive:
      • Hold down Ctrl+E on your keyboard in Other nonpassive items (Ctrl+E).
      • Enter the Description.
      • Enter the Amount as a negative number.
      • Click OK.
  1. Go to Screen 20, Passthrough K-1's.
  2. Select the Partnership from the left navigation panel.
  3. Scroll down to the Line 13 - Other Deductions section.
  4. Locate the Line 13 - Other deductions subsection table.
  5. Click in the K-1 Code column and select the dropdown arrow.
  6. Select Q - Commercial revitalization deductions from RRE activities.
  7. Enter the Amount.

Refer to this article for instructions on entering Schedule K-1, line 13, code R in the program.

If you did not materially participate in the activity, use Form 8582 to determine how much of these expenses can be reported on Schedule E (Form 1040), line 28. If you materially participated in the reforestation activity, report the deduction on line 28, column (i), of Schedule E (Form 1040). Refer for the Partner's Instructions for Schedule K-1 for more information.

Follow these steps to enter line 13, code S:

  1. Go to Screen 20, Passthrough K-1's.
  2. Select the Partnership from the left navigation panel.
  3. Scroll down to the Separately Stated Income and Deductions section.
    • If the deduction is passive:
      • Locate the First Passive Item subsection.
      • Hold down Ctrl+E on your keyboard in Other (Ctrl+E).
      • Enter the Description.
      • Enter the Amount as a negative number.
      • Click OK.
    • If the deduction is nonpassive:
      • Hold down Ctrl+E on your keyboard in Other nonpassive items (Ctrl+E).
      • Enter the Description.
      • Enter the Amount as a negative number.
      • Click OK.

Refer to this article for instructions on entering Schedule K-1, line 13, codes T, U, or V in the program.

Refer to this article for instructions on entering Schedule K-1, line 13, code W in the program.

Was this helpful?

You must sign in to vote, reply, or post
Lacerte Tax

Sign in for the best experience

Ask questions, get answers, and join our large community of Intuit Accountants users.