K-1 Form

[mrbill]

Line 3 (Net ST CG) has $29. Line 4A (net LT CG) has $891. No problem with these figures. Line 5 (Other Portfolio etc) has $23,529. Line 14 H has (minus)-$23,139. Am I correct in saying that i show a gain of $390. Thanks,

[TaxGuyBill]

No.

Line 5 says you have $23,529, which is subject to all applicable taxes.

Line 14H that $23,139 is not subject to the Net Investment Income Tax on Form 8960. That does not affect income tax.

[Rapid Robert]

Very unhelpful for OP to not mention which Form K-1 they are referring to, I had to look at them all to find out it was Schedule K-1(Form 1041).

There are instructions published by the IRS that answer the question.

"Code H. Net investment income tax. This amount is the beneficiary's adjustment for section 1411 net investment income or deductions. Enter this amount on line 7 of Form 8960, as applicable. See the Instructions for Form 8960."

"Note. If the amount reported on Schedule K-1 (Form 1041), box 14, with a code “H” is a positive number, enter it on Form 8960, line 7, and increase your MAGI on Form 8960, line 13 (or Form 8960, line 19a) by the same amount.
If the amount reported on Schedule K-1 (Form 1041), box 14, with a code “H” is a negative number, and the trust has indicated some (or all) of the adjustment also requires a MAGI adjustment, enter it on Form 8960, line 7, and make the applicable increase or decrease to your MAGI on Form 8960, line 13 (or Form 8960, line 19a) as necessary."

[New York Enrolled Agent]

No.

Line 5 says you have $23,529, which is subject to all applicable taxes.

Line 14H that $23,139 is not subject to the Net Investment Income Tax on Form 8960. That does not affect income tax.

TGB is completely on target. The "other portfolio" income has a decent probability of being an IRA distribution to the estate.

[mrbill]

Thanks for the replies. I further learned that the distribution was from a deceased's IRA, which made it fully taxable.