I am pretty sure AJ is new this year. I haven't done an entity with royalties yet, so you are ahead of me there. But it looks like I have REPped one that will have royalties, because it always has the same states, so let's see what I get.

Forms instructions say AJ is " Excess business loss limitation," and I agree with you that royalty deducts are not that - and if they were, royalty income should also appear there. The amount also hits Sch K Line 20c, so overriding the K-1 is not the fix we want.

Override for everything is in Schedule K-1, Other Schedule K Items, Other Information, Aggregate Business Activity. Enter a -1 to make it all go away.