How do I enter 1120-S Schedule K-1 line 17 Codes AC & AJ information

Forum|Forum|2 years ago
March 30, 2024
1 reply
121 views

S Corp K-1 Line 17 has Codes AC and AJ checked with attachment as follows:

AC: Gross receipts for section 448(c): $
AJ: Aggregate Business Activity Gross Income: $
AJ: Aggregate Business Activity Total Deductions: $

How to enter information on Schedule K-1 of the 1040 (AJ: Excess business loss limitation)?

ProSeries Basic

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Best answer by Terry53029

Form 8890 is not in pro series. You use it to calculate the amount of business interest expense you can deduct and the amount to carry forward to the next year for your client if it applies. Look for it at irs.gov. If code AJ income and deductions are positive then that K1` will not effect your client. It is for information for that 1120S only. If your client has other business losses then you would use that K1 to off set his other losses if he has any, otherwise no effect. code ZZ is for other info that the 1120S corp will tell you if it has any other info that may effect your client

T

Terry53029

Intuit Community Champion

For code AC see instructions for form 8990. for code AJ the loss shown (income - deductions) will be used if you need to figure any excess business loss limitation for your client. See section 461(l) and the Instructions for Form 461 for details.

A

aedwanAuthor

Level 5

Thanks so much Terry!

For AC: I entered amount on Line 17 for Code AC but didn't trigger Form 8990, and couldn't manually access 8990...Do you know if ProSeries Basic support it?

For AJ: Income is higher than deductions so there's no excess business loss limitation, yet the S Corp K-1 used AJ code for both income and deductions as positive numbers. Can I enter both AJ as other information on Code ZZ, with deductions as a negative number?

T

Terry53029

Answer

Intuit Community Champion

Form 8890 is not in pro series. You use it to calculate the amount of business interest expense you can deduct and the amount to carry forward to the next year for your client if it applies. Look for it at irs.gov. If code AJ income and deductions are positive then that K1` will not effect your client. It is for information for that 1120S only. If your client has other business losses then you would use that K1 to off set his other losses if he has any, otherwise no effect. code ZZ is for other info that the 1120S corp will tell you if it has any other info that may effect your client

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