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Fiduciary Passthrough K-1 Tax Exempt Income Frequently Asked Questions

SOLVEDby Intuit2Updated February 08, 2023

Use the Tax Exempt Income (18) section in Screen 25, Passthrough K-1s, to enter tax-exempt income from Schedule K-1 into a Fiduciary return. See Partnership Schedule K-1 Line 18B Other Tax Exempt Income For Fiduciary Return for more information.

Where do I enter nondeductible expenses from a 1065 Passthrough K-1 for Fiduciary Return?

The 1065 Schedule K-1 Instructions for Box 18, code C state that "nondeductible expenses paid or incurred by the partnership are not deductible on your tax return.  Decrease the adjusted basis of your interest in the partnership by this amount if necessary." Basis limitation does not apply at the Fiduciary level.  However, you can include the nondeductible expenses amount as supplemental information on Individual beneficiaries' Fiduciary Schedule K-1.

  1. Go to  Screen 46, K-1/Grantor Other Information.
  2. In the left navigation panel, under Bene / Gtr, select either All Bene / Gtr or select a specific Beneficiary.
  3. In the left navigation panel, under Section select either Other Information (ALL Beneficiaries/Grantors) or Supplemental Information (ALL Beneficiaries/Grantors).
  4. Enter the applicable information to appear on the supplemental information.

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