Level 2

1065 Line 13L-Deduction Portfolio (Other)

Forum|Forum|7 years ago
March 14, 2019
1 reply
30 views

Entering K-1 input on individual module Line 13L-Deduction Portfolio (Other) ends up showing up on Schedule A Line 16. Now that it's not deductible shouldn't that be excluded and reduce basis in the basis limitation worksheet at the same time. If it's not entered (which is the only way to exclude from going to Schedule A) it must be manually entered as Other current year decreases to basis in that section. Would think this would be automatic. Are we missing something here?

Lacerte Tax

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J

JimmyM

Level 3

Amounts coded with an "L" on the Partnership K-1, line 13 are deductible on line 16 of Schedule A. These porfolio deductions are not subject to the 2% floor. In prior years, amounts subject to the 2% floor on line 13 of Sch K-1 would have been coded with a "K". This code has been deleted. Thus, you should not need to make additional entries as other current year decreases.

D

dclacertecommunityAuthor

Level 2

Ok thanks! I take it then that when we receive a K-1 from an outside source and it has "L" then it is go to go as a Schedule A deduction and that the decision was made on that Partnership level that it was deductible even though it says Deduction Portfolio. In the one case we saw thus far we knew it was actually Investment Management Fees (cause actually we did the partnership return) and shouldn't have put it on the K-1 as code "L" but rather as a nondeductible expense. Concur? Learning as we go, ugh! :)

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