Schedule K-1, Box 20

Forum|Forum|11 months ago
April 13, 2025
1 reply
0 views

I received a filled out K-1 from the partner that runs our family farm. My share is 7%. There are 3 boxes checked in 20, as follows:

AJ Aggregate Business Activity Gross Income. 7,488

AJ. Aggregate Business Activity Total Deductions 5, 839

AN Gross Farming Income. 7,488

The form doesn't allow me to change the AJ default, which doesn't make sense. Others have said to leave this blank. I don't know what to do.

PatriciaV

Employee

Schedule K-1 Box 20 Code AJ information is relevant only if your net losses from all businesses are more than $305,000 ($610,000 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).

Schedule K-1 Box 20 Code AN reports Farming and Fishing Business income(loss). Section 1301 of the tax code allows for averaging of farming income that is inconsistent over several years.

If you are not familiar with this aspect of your K-1 investment, you may wish to contact 1) the company that sent you Schedule K-1 and/or 2) a tax local tax professional with experience in reporting farming income.

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