1065, only domestic res. rental real estate activity. Somehow all rental income is showing up in Sch. K Line 16r, override to zero not removing from K, Line 16r. Help?

[itonewbie]

Which screen did you use to enter the rental income and expenses?

Do you have F.8825 for these rental properties?

Do you see the rental income being report on Line 2 of these K-1's?

Don't believe any of the input fields on Schedule K > Rental Real Estate can trigger reporting on Line 16.  Instead, entries for Line 16 are made on Schedule K > Other Schedule K Items, on the Less Common Scenario tab.

You may want to double check your input.

[john-huibregtse]

Thanks for the reply.  Appreciate it.  

I did use Schedule K > Rental Real Estate to input my rental activity, which is all domestic activity.  The only data I input at Schedule K > Other Schedule K Items, on the Less Common Scenario tab is a bunch of zero overrides once this issue cropped up.  Stranger yet is that the issue only shows up on Box 16 AA, AB, AC, and AD of just one of my 9 K-1's, all other 8 have blank Box 16's (as they should).  There is no foreign activity form prepared to file, just data in box 16 on one of my 9 K-1's.  There are no foreign partners, no foreign anything.  If the solution is staring me in the face (it may be), I'm just not seeing it.

Thanks again.

[itonewbie · Accepted solution]

I see that you're preparing a 1065 for 2020.  Those codes for Line 16 are related to BEAT and its new reporting requirements.  If it does not apply to your client, you will need to override those on the following screens:

• Code AA: Schedule K > Other Schedule K Items > Other Schedule K Items, under the Less Common Scenario tab, on the line for Gross receipts per Reg. 1.59A-7(e)(2) [Override], enter -1 (yes, negative one);
• Codes AB, AC, and AD: Schedule K-1 > Schedule K-1 Miscellaneous, on the tab for the partner whose K-1 is showing an amount, scroll down to the section for Gross Receipts per Regulations 1.59A-7(e)(2) [Override], and enter -1 (negative one) on each of the 3 lines.

[john-huibregtse]

That looks like it did the trick, thank you very much for your assistance, it is appreciated.  

[itonewbie]

NP, @john-huibregtse.  Have a great week ahead!

[AtlasDaniel]

Yes, related to BEAT and not applicable to my client. Thanks so much for the override info. You saved me a lot of time! Thanks so much for your help. Much appreciated. All the best in the tax season.

-Daniel

[itonewbie]

NP, @AtlasDaniel!  Have a great weekend and tax season yourself too.  Cheers!

[shall]

Any idea what to try if entering -1 does not clear the AA amount? The other amounts disappeared but not the first one.

[Madison39]

Hello - I am facing the same scenario.  Completing Form 1065 [ F8825]. Lacerte is automatically populating Box 16 [AA, AB and AC]. I do not have any foreign partners. Should I override or is this a new legislation that we now need to report. It appears to be related to the 163(j) limitation. Thank you!

[itonewbie]

@shall What do you get by entering -1 for AA?

[shall]

I get 60% of current year gross receipts (on the K-1 of a partnership that is a 40% partner) which makes even less sense. It doesn't calculate anything on the K-1's of the partners that are trusts or individuals.

[berrymoro2017]

I have the same problem as the last reply, any other solutions?