Form 1065, Schedule K-1, Line 20, Code AA

[RogerShadley]

Does anyone know how Code AA is calculated?

[Accountant-Man · Accepted solution]

On a simple 1065 I have, the 199A wages are the same as page 1, line 9.

On a 1120S, mine are lines 7 and 8, page 1.

[RogerShadley]

Thank you!

[kenzcpa]

Line 16 on K-1 output appears to be a tax program error. Numbers are being picked up from Screen #5

(past three years gross receipts) and incorrectly being put on line 16 of certain K-1s. In my case it is always partner # 2 as foreign income.

Thre is NO foreign income or foreign partner- This is a program problem which I have reported several times

[Kim]

I am having the same issue. I hope the next update correct this. I can not send returns out.

[CarolZ]

As of today, I am having the same issue with line 16.

[kenzcpa]

The explanation Lacerte gave for this problem does not make sense. They say

it is for a "erosion tax reporting " what is this? This appears to be a software problem and they are not fixing it. If your partners K-1 is a entity, it is picking up 4 lines instead of one!

[sch2020]

Lacerte is following IRS instructions.  See the codes for the K-1 under Box 16 - AA, AB, AC and AD.  If your partnership has a partnership as a member/partner then these will show up on Line 16.  We are just putting a supplemental note on the K-1 to that partner that reads..

Box 16 Code AA - AD - Gross receipts per Regulations 1.59A-7(e)(2)

Code AA - Current Year

Code AB - First Preceding year

Code AC - Second preceding year

Code AD - third preceding year