Why is Form 8960 pulling in the wrong amount for line 9b?

Forum|Forum|4 years ago
October 29, 2021
1 reply
6 views

When I cross-reference the source of 8960 line 9b, PS shows that the amount comes from the Part II, Line 4 of the Distributable Income for Schedules K-1, but it is excluding the amount of taxes on Non-Passive Income (Column 4(e)). Should this not also be included in Form 8960? I don't see anything in the 8960 instructions specifically indicating this should be excluded.

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TaxGuyBill

Level 15

@davetodd11 wrote:
the amount comes from the Part II, Line 4 of the Distributable Income for Schedules K-1, but it is excluding the amount of taxes on Non-Passive Income (Column 4(e)).

Unless I'm missing something, your lack of information makes it difficult or impossible for anybody to help you.

What kind of K-1 is it?
Line 4? Line 4 of what? Do you mean Box 4 of the K-1?
Column 4(e)? What does that mean? What form? I can't find a 4(e) on anything.
If it is complicated or confusing, attaching pictures may be helpful.

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davetodd11Author

Level 5

It is a 1065 K-1.

Line 4 of Part II of the "Distributable Income for Schedules K-1". PS takes you to this worksheet when you right-click on the Form 8960, Line 9b figure, select "Cross-Reference", and you then click link in the Help Center results that come up. Photo added below:

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TaxGuyBill

Level 15

It is probably because I don't have a filled-in K-1 with the proper information, but unfortunately my Cross Reference shows something different, and I can't even find that Distributable Income worksheet.

However, I did notice that the bottom of your first picture mentioned rental income, but it is showing up in the column of the second picture as non-passive income. Why is it is non-passive? *IF* the rental is (1) a "trade or business" and (2) is non-passive, then 8960 would not apply to that income. Might that possibly be what is going on???

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