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Taxpayer got a 1065 K-1 with code AH in box 20. Explanation is "net long-term capital gain-held greater than 3 years". How do I show this?
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This is likely the disclosure for carried interest and supplemental info for Line 9a. Under TCJA, generally, only net gains on assets with holding periods of greater than 3 years could qualify for capital gain tax rates. You probably want to dig deeper to ensure your client's interest in the partnership and those cap gains are governed by §1061.
I'd report that as you normally do with capital gain flowing through K-1, except for how you differentiate between short and long-term gains based on the 3-year holding period, at least until new regulations are issued with the necessary guidance.
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