Schedule K-1 Box 20 code B

Forum|Forum|3 years ago
April 19, 2023
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I'm filing a multi-member partnership return from K-1 received from another pass-through LLC. There is amount on the Schedule K-1 box 20 code B. TT business said that this amount should be input to form 4952 line 5. But I couldn't find the form 4952 from TT business, nor was able to proportion this amount to the new K-1 form. Please advise. Thank you!

TurboTax Business Windows

Best answer by PatriciaV

No. Box 13 reports Investment Interest Expense for the partnership. Box 20 Code B is for other Investment Expenses that flow to the partners but do not affect partnership income.

You can use Special Allocations to report this flow-through expense on the individual Schedules K-1.

First, confirm that "Makes Special Allocations" is listed as Yes under Business Info >> About Your Business.
Go to Partner/Member Information and click Done at the bottom of the Member Summary page.
Continue to the page "How to Enter Special Allocations" and click "See Demo" at the bottom.
Follow the first example for Special Allocation by Amount to enter (1) the total amount to allocate on Line 20b and an "A" in the small box on Form 1065 p4 Schedule K and (2) the specific Box 20b amounts on the Schedule K-1 worksheet for each partner under Special Allocations By Amount Line A. You will need to calculate the allocations yourself.
To confirm the allocations, open Sch K Reconcile (Lines 1 thru 20b). There should be no form errors and the total for Line 20b should match the amount reported on the K-1 from the pass-through entity.
The result is shown on each partner's Schedule K-1 Line 20 Code B.

Mike9241

4952 doesn't apply to partnerships. on that k-1 line 13 there should be investment expenses that total to 20B. turbotax will add those to compute its total of investment expenses and allocate to the partners so you'll see an allocations of your own partnership's k-1's lines 13 and 20B.

jesunatttAuthor

Hi, Mike,

Thank you for your info. The K-1 I received has box 13 "other deductions" blank without any code nor amount. Should I add Box 20 Code B amount to box 13? Thank you!

PatriciaVAnswer

Employee

No. Box 13 reports Investment Interest Expense for the partnership. Box 20 Code B is for other Investment Expenses that flow to the partners but do not affect partnership income.

You can use Special Allocations to report this flow-through expense on the individual Schedules K-1.

First, confirm that "Makes Special Allocations" is listed as Yes under Business Info >> About Your Business.
Go to Partner/Member Information and click Done at the bottom of the Member Summary page.
Continue to the page "How to Enter Special Allocations" and click "See Demo" at the bottom.
Follow the first example for Special Allocation by Amount to enter (1) the total amount to allocate on Line 20b and an "A" in the small box on Form 1065 p4 Schedule K and (2) the specific Box 20b amounts on the Schedule K-1 worksheet for each partner under Special Allocations By Amount Line A. You will need to calculate the allocations yourself.
To confirm the allocations, open Sch K Reconcile (Lines 1 thru 20b). There should be no form errors and the total for Line 20b should match the amount reported on the K-1 from the pass-through entity.
The result is shown on each partner's Schedule K-1 Line 20 Code B.