TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Community

Question

Code AJ

Forum|Forum|2 years ago
February 24, 2024
4 replies
0 views

I have a K-1 with Box 20 marked STMT AJ. I have two numbers that need to be entered for this code, where do I put those?

TurboTax Home & Biz Windows

DianeW777

It depends on the type of K1. If we assume it's a 1065-K1, then you select Box 20 on the screen 'Check boxes that have an amount or are checked on the form'. Once this is answered you will have the opportunity to enter the amounts you have on your statement for both letters A and J. See the image below.

Search (upper right) > Type k1 > Click the Jump to... link > Continue to enter your K1

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

ChoopyAuthor

Thanks for the message the actual code is AJ Excess Business Loss Limitation.

DianeW777

If you select the dropdown you will also be able to select AJ from the list, Excess Business Loss Limitation.

@Choopy

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

drcomolli

I have two numbers with code AJ. Aggregate business activity gross income or gain and aggregate business activity deductions. What do I do with them??

PatriciaV

Employee

In the Schedule K-1 interview, choose Box 20 Code ZZ instead of AJ. Leave the amount blank. Continue until you see "Enter Other Information Detail." Enter two lines: Label one line "AJ - Aggregate Business Income" with the number from Box 20 additional information and the second "AJ - Aggregate Business Deductions" (usually a negative number).

Your entries appear on the K-1 worksheet under Box 20 Code AJ to ZZ Line 6.

@drcomolli

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

xenon_001

Hello:

The previous links about known issue and its resolution no longer work, they lead to “We're sorry, we can't find the page you requested.” error.

I have received a Schedule K-1 with two codes on line 20:

Code Z -ORDINARY INCOME (LOSS) - with a negative amount, say, -p.

Code AJ -AGGREGATE BUSINESS ACTIVITY DEDUCTION - with a positive amount, say q.

When I input these numbers in the K-1 workflow, TurboTax flags an error during Smart Review, asking about “"basis of gasification”.

I have been waiting since Feb 19 for a fix to this issue, However, the previous link to the known issue have now silently disappeared: https://ttlc.intuit.com/turbotax-support/en-us/help-article/schedule-k-1/receiving-error-turbotax-schedule-k-1-box-20-code/L94HQwwAB_US_en_US

i have updated my software and am still receiving this error (Premier, desktop version) as of 19 March 2024, a full month since I first ran into this.

Can you please help?

BradyJB44492

Would it be acceptable to do the following for Schedule K-1 Box 20 Code AJ step-by-step?

(1) Select the code AJ - Excess business loss limitation

(2) For the amount field, right click and add supporting details

(3) Add the aggregate business activity gross income

(3) Subtract the aggregate business activity deductions

The above documents both numbers in the supporting details.

Would this be an acceptable method for code AJ? Are there downsides to doing this?

PatriciaV

Employee

Your entries appear on the K-1 worksheet under Box 20 Code AJ to ZZ Line 6, but will not be used in your tax return for the following reason:

This information will be used only if your net losses from all businesses are more than $289,000 ($578,000 if filing a joint return). If this doesn't apply to you, leave Box 20 Code AJ blank (or do not include this code).

If the excess business loss does apply to you, this information will allow you to figure any excess business loss limitation that may apply. See IRS Instructions for Form 461 - Limitations on Business Losses. TurboTax does not include Form 461, which must be attached to your tax return (print and mail).

@BradyJB44492

@Tami5

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

hdrader39

Where do I enter it in the 1040 return ?