Re: Where to post Excess Taxable Income (K-1 (20AE)) on a partnership's 1065?

davetodd11 · ‎10-06-2021

I'm working on a partnership's 1065, and they have $700K in Excess Taxable Income showing in box 20, code AE of a K-1 that they received. The K-1 Entry Wks-Partnerships indicates "Not provided for in program. Manually enter on appropriate tax form." Where should this data be entered into ProSeries?

I had some box 18 data, which I was instructed to post to the Sch M-1 Worksheet. Boxes 18, 19,

sjrcpa · ‎10-06-2021

Wherever you're posting the info for the 8990 and/or its worksheets..

The more I know the more I don’t know.

davetodd11 · ‎10-07-2021

The return I'm working on was actually already filed. I'm just entering it into my ProSeries to verify it is correct, and have the file ready to transfer next year, when I takeover the return prep for the partnership.

The accountant that submitted the return did not file an 8990. I'm not familiar with that form, but looking at the instructions it is my understanding that it is not required for taxpayers with annual average gross receipts for the last 3 years of less than $26M. They are therefore considered a small business taxpayer and aren't subject to he section 163(j) limitation. Do I understand that correctly?

If so, is there somewhere else on the return where this data should be entered?