Schedule K-1 (Form 1065) Box 20 Code AH

Forum|Forum|6 years ago
March 11, 2020
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My K-1 Box 20 has Code AH with the following description:

Business Interest Expense Limitation Information:

Adjusted Taxable Income $10,555

I don’t know what I am supposed to do with this information. The dollar amount does not seem to be related to any other information on the form. I did not know if this is an additional income for my Maryland tax return? I did not know if I am to do anything with the dollar amount for my 2019 taxes or for my future 2020 taxes. Do you know what this means? In looking at the IRS document “2019 Partner’s Instructions for Schedule K-1” it is still unclear to me what the description means.

Thanks for your help!

Best answer by DaveF1006

Read this IRS link as it explains the limitation on the deduction for business interest expense. Entering this does not affect your tax return. it is telling you that $10,655 business interest cannot be claimed because there is a 163(j) limitation on the deduction for business interest expense?

Generally, taxpayers can deduct interest expense paid or accrued in the taxable year. However, if section 163(j) applies, the amount of deductible business interest expense in a taxable year cannot exceed the sum of:

the taxpayer’s business interest income for the year;
30% of the taxpayer’s adjusted taxable income (ATI) for the year; and
the taxpayer’s floor plan financing interest expense for the year

DaveF1006Answer

the taxpayer’s business interest income for the year;
30% of the taxpayer’s adjusted taxable income (ATI) for the year; and
the taxpayer’s floor plan financing interest expense for the year

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Shane15Author

Thanks! From reading the provided link, I think my K-1 was just providing me the calculated value for ATI. I believe the limitation was not reached, and there is not a carry forward to the next year.

KathrynG3

For the Maryland filing, please see these additional resources for more detail:

2019 Maryland Individual Income Tax Preparation

Resident Booklet

Maryland Form 500DM Instructions

Lbeans315

I need a copy of my 2020 Schedule 1 tax return please

DoninGA

Employee

@Lbeans315 wrote:

I need a copy of my 2020 Schedule 1 tax return please

To access your prior year online tax returns sign onto the TurboTax website with the User ID you used to create the account - https://myturbotax.intuit.com/

Scroll down to the section Your tax returns & documents. Click on the Year and Click on Download/print return (PDF)

If you used the desktop CD/Download editions installed on your computer, the only copy of your tax data file and any PDF's will be on the computer where the return was created. TurboTax does not store online any returns completed using the desktop editions.

Or go to this IRS website for free federal tax return transcripts - https://www.irs.gov/individuals/get-transcript

For a fee of $43 you can get a complete federal tax return from the IRS by completing Form 4506 - http://www.irs.gov/pub/irs-pdf/f4506.pdf