- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I have a client filing his personal taxes and he has a schedule K-1 from a partnership he owns with another guy with the amount of $12,000 in Box 13 with a code of R next to it. When I try to enter the info in his personal taxes in ProConnect (under Passthrough K-1's, Partnership info), codes only go to Q and there is no code R. This is the SEP IRA that partnership contributed on behalf of him (a partner). How can I enter this amount in his personal tax return since it could not be deducted from partnership income because it was contributed for a partner?
Thanks
PhoebeRoberts
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I believe you enter it in the Adjustments to Income screen, the same as if it were a self-employed person with a SEP. The SEP contribution has no impact on outside basis, so no manual adjustment needed.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Thank you, I tried that but it's not reflected in the form 1040. It doesn't show it anywhere in the tax return.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
did the K-1 show net earnings from self-employment income? (Box 14)
did the client has self-employment income?
look into the SEP-IRA contribution eligibility requirements.
I come here for kudos and IRonMaN's jokes.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Is there self-employment loss from another source?
The more I know the more I don’t know.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I checked BOX 14 and is empty but he is an active partner. Just because it's empty does it mean he cannot deduct anything for contributions?
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
https://proconnect.intuit.com/community/schedule-k-1/help/partnership-k-1-input-box-13/00/4779 would be helpful, BUT since box 10 is blank, it indicates a problem at the partnership level. https://www.irs.gov/retirement-plans/retirement-plan-faqs-regarding-contributions-what-is-a-partners...
Is box 1 positive or negative?
Is box 4a positive?
Answers are easy. Questions are hard!
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Sounds like the K-1 is incorrect. The partnership can only make SEP contributions on behalf of partners that have SE income. An active partner should have SE income. (Unless this is a rental real estate thing).
The more I know the more I don’t know.
