terralaw
Level 2

Hello,

Thank you for the help.

Lease bonus payments and production taxes are showing up with Code AJ on the partners' K-1s. I believe these amounts are NOT "income or gain" or "deduction attributable to a business activity". Therefore, I think there should be a way to suppress Code AJ.

The production taxes were incurred in connection with passive royalty income. Additionally, the royalty income that generated the production taxes is NOT "income or gain" showing up with Code AJ. Therefore, I don't think the production taxes should either.

0 Cheers