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Entering 1065 K-1 line 18B in the Individual module for Lacerte

by Intuit• Updated 11 months ago

Line 18B is for other tax exempt income, and for Tax Year 2020 and forward, it can be entered in Screen 20.1

Select the Detail tab
Select Screen 20, Passthrough K-1's
On the left pane, select Partnership Information to view the partnership K-1s
Select the applicable K-1
In the section list, select Line 18 - Tax-Exempt Income and Nondeductible Expenses
Enter the amount in (18B) Other tax-exempt income

Entering other tax exempt income (line 18B) in the Individual module for 2019 and earlier years

There is no direct input field for line 18B on Screen, 20.1, Partnership Information in the Individual module.

Per the IRS instructions for Schedule K-1, line 18B:

"Code B. Other tax-exempt income. Increase the adjusted basis of your interest in the partnership by the amount shown, but do not include it in income on your tax return. The partnership will attach a statement for the amount included under code B that is exempt by reason of section 892 and describe the nature of the income."

Navigate to Screen 20.1, Partnership Information.
Click on the Partnership from the left navigation panel.
Scroll down to the Basis Limitation section.
Enter the amount in, Other current year increases to basis (Ctrl+E) code 165.

Lacerte Tax

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