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Level 2
December 6, 2020
Question

1041 K-1 to beneficiary Box 12 is A with a negative amount equal to box 6

  • December 6, 2020
  • 1 reply
  • 12 views

I don't understand why the beneficiary's k-1 is showing Code A in Box 12 with an amount equal to box 6 but as a negative amount.  No other entries on K-1, including QBI even though all of the activity on the trust is material participation ordinary trade or business income.

 

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1 reply

Level 15
December 6, 2020

You are preparing the 1041 and that is how the software is creating the K-1?

Or are you preparing the 1040, and your client received that K-1 which does not make sense to you?

cynvas159Author
Level 2
December 7, 2020

Preparing the 1041 and the K-1 -- I believe the IDD on a min tax basis which is equal to the IDD results in no Alt min adjustment yet it is showing the IDD as a negative amount as the K-1 box 12 code A amount.

Thank you for your help. 

Cindy

Level 2
May 12, 2021

Same issue for me for 2019 form 1041 and the K-1.

Any resolution?  Thank you.