K-1 (form 1065) Line 20 Code M

[mmurrell]

Where do I report an amount from a 1065 K-1 box 20 with a code M (Recapture of section 179 deduction)?

[Roland Slugg]

Well, it goes on F-4797, Part IV, column (a), but from there the amount on line 35 should go on Schedule E (Form 1040), page 2, line 28. In the supplemental information furnished with the K-1 there should be information telling the partner how much to report on lines 33 and 34 of F-4797.

Having said that, the recapture amount may already be included on the K-1 on line 1, and if it is, you should not include it a second time on Schedule E. (Although lines 33, 34, 35 should still be completed on F-4797.) The supplemental information furnished with the K-1 should contain enough information for you to be able to figure out if the amount coded M on line 20 of the K-1 is also included in the same K-1 on line 1.