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April 14, 2022
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I am trying to determine how to enter box 13 code W for the Schedule K-1 that I received ($2 amount). How do I choose from the Turbo Tax options for Enter Code W Detail?

  • April 14, 2022
  • 2 replies
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These are the instruction for LIne 13w: Portfolio Deductions - The Portfolio Deductions from investing activities, if any, are non-deductible for certain taxpayers, including
individuals, and would reduce your tax basis in the partnership. Please consult your tax advisor.
Best answer by AliciaP1

That clears it up - thank you for posting it!  This is not a tax reporting issue for you but affects your basis calculation.  You should not include the amount in box 13 on your tax return, but be sure to include it in your personal basis tracking.

 

@angelight3311

2 replies

AliciaP1
April 14, 2022

You need to enter your K-1 in entirety as it is reported on the form you have received.  To do this in TurboTax Online you can follow these steps:

 

  1. Sign in and open your return by selecting Pick up where you left off under a section.
  2. Search for K-1 and select the Jump to link at the top of the search results.
  3. This will take you to the Schedules K-1 or Q screen.
  4. Answer Yes and follow the prompts. You may be prompted to upgrade to Premier, if you're not already using it.
  5. We’ll ask some questions about your K-1, and then you’ll enter the data from the form.
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April 14, 2022

Thank you for your help with this issue. I have done all those steps that you outlined.

 

This is the page of those steps that I get to that  I don't know how to answer: Enter Code W Detail

 

"Enter Code W Detail

 

Select the type of detail supplied on your K-1, box 13, code W. Then fill in the requested detail regarding the $2 you entered on Box 13, for Code W.

 

Early Withdrawal Penalty

Investment Interest Expense

Miscellaneous Itemized Deductions

Nonpassive Deductions to be Reported on Schedule E, Page 2

Section 754 Depreciation

Taxes and State Income Withheld

I Have Another Description Item"

 

I am require to select one of the above options, but my Schedule K-1 does not seem to give any specific instructions on this.  There is an asterisk in box: 13 W* with the $2. *See attached statement for additional information." The 2021 Schedule K-1 Instructions page gives this message for Line 13w: "Portfolio Deductions - The Portfolio Deductions from investing activities, if any, are non-deductible for certain taxpayers, including
individuals, and would reduce your tax basis in the partnership. Please consult your tax advisor."

 

I do not know which of these above options is the correct one. If you have any advice, it will be most appreciated. 

AliciaP1
AliciaP1Answer
April 17, 2022

That clears it up - thank you for posting it!  This is not a tax reporting issue for you but affects your basis calculation.  You should not include the amount in box 13 on your tax return, but be sure to include it in your personal basis tracking.

 

@angelight3311

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April 9, 2023

I have same question. Could you please share what you found? I guess should be bullet 3?

PatriciaV
Employee
April 9, 2023

If you're asking about Box 13 Code W and the supplemental information about the amount indicates the portfolio deduction is not deductible, do not include this amount on your return. In fact, remove Code W from your K-1 input. Nondeductible items may influence your outside basis in the investment (your records), but do not change your taxable income.

 

@Tbthy 

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