Question on K1 Data Entry

[Bjorn]

Fact Pattern:
1065-k1 box 20 code W
I'm not sure what to do with this number??? Instructions say other information, then the reports on the k1 says specifically allocated item report on schedule E. I don't even know if this is income or expense or where on the E it goes.

Mahalo

Bjorn

[Snaggletooth]

Mahalo Yourself

...whatever that means. Possessive form of angelic attire perhaps??

I've run into this too Bjorn, and I've had to get the information from the preparer of the K-1.
That appears to be the only fail-safe.

Regards, Snag

[Bees Knees]

It is something that only the person who prepared the partnership return can answer. Like you said, it could be income specially allocated to this partner, reportable on Schedule E, or it could be an expense specially allocated to this partner, deductible on Schedule E.

The person who prepared this 1065 gets an F for not following instructions. Box 20 says “The partnership should give you a description and the amount of your share for each of these items.” “Specifically allocated item report on schedule E” is not a description. Anything and everything reported in Box 20 is some form of specifically allocated item. Duh!

[Bjorn]

K1

I called the CPA and found out the item was a deduction for the partner

Mahalo means Thank you!

[S T]

From Limited Partnerships

Bjorn, Happy for you that you could obtain the info.

There seem to be alot of these codes being issued this year on K-1 forms, and it is really difficult to try to track down for an LP, no paperwork and seems like t/p can't obtain info. I guess the issuer feels it is non important for the "little" person.

Sandy

[DTS]

K-1

I called a company two days ago trying to find out one of these codes I posted about a few days ago. Absolutely, no response.

I will have the client call the company and threaten a pull-out

Dennis

[S T]

The unfortunate reality

Dennis,

The unfortunate reality of this that if they are a Limited Partner, it is really hard for them to pull out of the investment or sell it. No one cares!

Sandy

[JG EA]

Usually it is a deduction - in the dollar amount listed. I had one a few days (weeks, hours?) ago that said "Specially Allocated Depreciation". Code for "here's a number we don't know what name to give it but this title sounds too important to question". I asked and it was just a partner deduction.

[jainen]

how I do it

>>I called a company two days ago trying to find out one of these codes I posted about a few days ago. Absolutely, no response.<<

Sure--whadja expect? They don't know either. A seasonal temp in the accounting office they contract with had some numbers left over, and just stuck 'em in anywhere.

At least, that's how I do it.

[S T]

So a clue

So JG where did you enter on the individual t/p return??

Both Dennis and I have struggled with this, altho the amount is very small.

Sandy

[JG EA]

So JG where did you enter on the individual t/p return??

Both Dennis and I have struggled with this, altho the amount is very small.

Sandy

E2. As a line deduction as I remember, like a 179. I'll look it up tomarrow. I think there was a place in my program for expense from K1.

[S T]

So Jainen

As usual, you are not giving us line by line instructions.

So exactly where do you enter on the 1040 form for the t/p that receives these K-1 forms, and they can not obtain or retrieve the information.

Can you just give us a "somewhat precise" answer? I think all will agree on the Board that we will not hold you to what you reply to, but it would be nice to know what your "real" thoughts are instead of "innuendos"

Sandy

[jainen]

worked up about Code W

>>what your "real" thoughts are<<

Honestly, Sandy, I don't know and I'm serious in my facetious suggestion that Code W is an arbitrary catch-all. Lucky for me the only one I have is labeled "Gross Receipts $250" and I'm not going to do anything with it. Whatever it is supposed to represent is dwarfed by the fact that the taxpayer sold his interest and I haven't a clue as to what his basis is because I don't have any prior years for this new client. It's shown on the broker statement but the buy date belongs to a different block of the same partnership that he already disposed of, and the loss is calculated as $6178 minus $5376 equals $689 which I'll save you the trouble, it doesn't compute, and when I asked the broker she went off about why I was reporting $20K profit on option sales as listed on the statement but she points out are not required on the 1099-B itself. And then she started in something about the Republicans and the Democrats but I was at my day job which is hourly so I had to cut her off.

So, basically, I'm not much worked up about Code W.

[Bees Knees]

Options are not required to be reported on a 1099-B.

And Code W for Box 20 of the K-1 can represent a very important number that needs to be correctly entered on the return.

It is called job security for tax accountants. You should be thrilled at the challenge.