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February 23, 2025
Question

Code 14H on K-1

  • February 23, 2025
  • 1 reply
  • 0 views

I'm having trouble completing the K-1 section for beneficiaries. Specifically, Code 14H is a negative number on the K-1 I received. It is supposed to negate the amount on line 5 because I do not owe taxes on the inheritance (only on any interest/dividends), but it is including it as income.  How do I correct this?

    1 reply

    M-MTax
    February 23, 2025

    The figure on Line 14H (negative) gets transferred to Line 7 of Form 8960 which would reduce the amount of your investment income subject to the NIIT.

     

    Form 8960 is generated by the program only if necessary (i.e., if your income exceeds a certain threshold).