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Common questions about partnership passthrough K-1s in ProConnect Tax

by Intuit Updated 4 months ago

What's new for Schedule K-1 for tax year 2023:

For tax year 2023 the IRS has added multiple new codes to the Schedule K-1. Most changes involve new codes for Other Income, Other Deductions, Other Credits and Other Information to provide additional details for when the 1040 is completed. To see the Partnership codes click here, to see the S-Corporation codes click here and scroll down to the code lists on the last pages of the instructions.

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Below, you'll find answers to frequently asked questions about passthrough K-1s in ProConnect Tax:

  1. Go to Input Return Schedule K Other Schedule K Items.
  2. Scroll down to the Deductions section.
  3. Locate the Other Deductions field.
  4. Select the desired code from the K-1 Code dropdown menu.
  5. Enter a Description.
  6. Enter the Federal amount, then a DescriptionSt. if diff., or State if applicable.
  7. Select OK after entering all items.
  8. Make sure the amounts on the Schedule K (Form 1065) and Schedule K-1, Line 13 are correct.
  9. Make sure the allocations to the partners on the Schedule K-1, Box 13 are correct. If you need to change any of the amounts:
    1. Select Special Allocations
    2. Select the Deductions (Sch. K-1, Boxes 12-13)

If the Other Deductions are from a passthrough entity:

  1. Go to Input Return Schedule K Passthrough K-1's.
  2. Select the Lines 12-19 tab.
  3. Scroll down to Other Deductions(13).
  4. Enter the amount in the Other deductions.
  5. Repeat steps 1-9 above.
  1. Go to Input Return Schedule K Other Schedule K Items. 
  2. Locate the Other Income (loss) field.
  3. Select the desired code from the K-1 Code dropdown menu.
  4. Enter a Description.
  5. Enter the Federal amount; then a DescriptionSt. if diff., or State if applicable.
  6. Select OK after entering all items.
  7. Make sure the amounts on the Schedule K (Form 1065) and Schedule K-1 are correct.
  8. Make sure the allocations to the partners on Schedule K-1, Box 11 are correct. If you need to change any of the amounts:
    1. Select Special Allocations
    2. Select the Other Income

If the Other Income (Loss) is from a passthrough entity:

  1. Go to Input Return Schedule K  Passthrough K-1's.
  2. Select the Lines 1-11 tab.
  3. Scroll to Other Income(11).
  4. Enter the amount in the Other Income.
  5. Repeat steps 1–8 above.

Entering cash charitable contributions:

  1. Go to Input Return Schedule K Other Schedule K Items. 
  2. Under the Income & Deductions tab scroll down to the Deductions section.
  3. Under the Charitable Contributions, you'll see two options for Cash. Enter the amounts as either 60% limitation or 30% limitation. See IRS Pub. 526 for help determining if the donation is a 60% or a 30% limit.

Enter noncash charitable contributions:

Noncash contributions are located on, Noncash Contributions, but you can adjust them in Other Schedule K Items.

Depending on when the noncash contributions were made, they may be subject to the 50% and 30% adjusted gross income (AGI) limits. Limitations apply at the partner's level.

  1. Go to Input Return Miscellaneous Forms Noncash Contributions (8283)
  2. Enter any applicable items.

Adjusting noncash contributions

Adjustments appear on Schedule K, but not on Form 8283:

  1. Go to Input Return Schedule K Other Schedule K Items
  2. Under the Income & Deductions tab scroll down to the Deductions section.
  3. Under the Charitable Contributions, Noncash subsection, enter your noncash charitable contribution in the following fields:
    • 50% limitation [Adjust]
    • 30% limitation [Adjust]
    • 30% capital gain property [Adjust]
    • 20% capital gain property [Adjust]
  1. Go to Input Return Schedule K Passthrough K-1's.
  2. Select the Lines 12-19 tab.
  3. Scroll to Other Deductions (13).
  4. Under the Charitable Contributions section, enter your cash or noncash contributions.
    • For cash:
      • 50% limitation (A)
      • 30% limitation (B)
    • For noncash:
      • 50% limitation (C)
      • 30% limitation (D)
      • 30% capital gain property (E)
      • 20% capital gain property (F)

Schedule M-1 and Schedule M-2 considerations

ProConnect Tax doesn't automatically adjust the difference between item cost/basis and item fair market value (FMV).

The FMV appears on Schedule K and flows through Schedule M-1 and Schedule M-2 into the "Partner Capital Accounts" balance sheet.

If the contributed item was carried on the books at cost, make a manual M-1 or M-2 adjustment to make Schedule M-1, Line 1 conform to "Book income," or Schedule M-2, Line 9 conform to "Ending Capital Accounts."

ProConnect Tax

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