In preparing my 2024 tax return, I am getting the following
error from Turbo Tax when processing my K-1. Box 13 contains
code AE with a dollar amount for expenses. The same item and
dollar amount is also in Box 20 as Code B. This data has
been entered into the tax software and looks correct to me.
Any idea what the Turbo Tax message may be about ? Is there
a workaround?
"Sch K-1 Wks-Partnerships (Massachusetts High Flyers
Investment Clu) Sch K-1 Partnership Additional Info 1: Other
deduction fields have no entry. A total of 92. has been
entered for code(s) W to ZZ. Code(s) W to ZZ require(s)
additional information. Please enter 92. on the appropriate
line or lines in this section."
Len Delmolino
Massachusetts High Flyers Investment Club
ira smilovitz on
I don't use TurboTax so I can't explain their error messages, but the background is this: 13AE expenses are not deductible on the federal return due to the changes made with TCJA. However, not all states adopted these changes. For the states that didn't conform (eg, NY), these expenses are still valid itemized deductions. I don't think MA allows many deductions, so the entry perhaps should be ignored.
The 20B entry is used to calculate allowable investment interest expense on Form 4962. If you don't have investment interest expense, you can ignore this entry.
In preparing my 2024 tax return, I am getting the following
error from Turbo Tax when processing my K-1. Box 13 contains
code AE with a dollar amount for expenses. The same item and
dollar amount is also in Box 20 as Code B. This data has
been entered into the tax software and looks correct to me.
Any idea what the Turbo Tax message may be about ? Is there
a workaround?
"Sch K-1 Wks-Partnerships (Massachusetts High Flyers
Investment Clu) Sch K-1 Partnership Additional Info 1: Other
deduction fields have no entry. A total of 92. has been
entered for code(s) W to ZZ. Code(s) W to ZZ require(s)
additional information. Please enter 92. on the appropriate
line or lines in this section."
Len Delmolino
Massachusetts High Flyers Investment Club
Steve Foster on
I got the same message Len. I went to the FORMS area and selected the K1P Addl Info 1 form. Scroll down to Box 13 then to Code W to ZZ then to line 8 Other. I put in "Accounting software expense" as the description and my portion of the bivio software expense on the right (92 for you). I then went back to EASY STEP and ran the error check again and this time it was "no errors". Good luck.
Steve Foster
Circle of Friends Investment Club
On Wednesday, February 26, 2025 at 10:43:26 AM PST, ira smilovitz via bivio.com <user*2883400001@bivio.com> wrote:
I don't use TurboTax so I can't explain their error messages, but the background is this: 13AE expenses are not deductible on the federal return due to the changes made with TCJA. However, not all states adopted these changes. For the states that didn't conform (eg, NY), these expenses are still valid itemized deductions. I don't think MA allows many deductions, so the entry perhaps should be ignored.
The 20B entry is used to calculate allowable investment interest expense on Form 4962. If you don't have investment interest expense, you can ignore this entry.
In preparing my 2024 tax return, I am getting the following
error from Turbo Tax when processing my K-1. Box 13 contains
code AE with a dollar amount for expenses. The same item and
dollar amount is also in Box 20 as Code B. This data has
been entered into the tax software and looks correct to me.
Any idea what the Turbo Tax message may be about ? Is there
a workaround?
"Sch K-1 Wks-Partnerships (Massachusetts High Flyers
Investment Clu) Sch K-1 Partnership Additional Info 1: Other
deduction fields have no entry. A total of 92. has been
entered for code(s) W to ZZ. Code(s) W to ZZ require(s)
additional information. Please enter 92. on the appropriate
line or lines in this section."
Len Delmolino
Massachusetts High Flyers Investment Club
Genie Shoffey on
Why is our subscription
cost to Bivio not an allowable deduction on the Federal Form? I
have the same question about paying for checks for club checking
account. These showed up in box 13 with the AE code.
Thank you!
Genie S
On 2/26/2025 1:15 PM, Steve Foster via
bivio.com wrote:
I got the same message Len.
I went to the FORMS area and selected the K1P Addl Info 1
form. Scroll down to Box 13 then to Code W to ZZ then to line
8 Other. I put in "Accounting software expense" as the
description and my portion of the bivio software expense on
the right (92 for you). I then went back to EASY STEP and ran
the error check again and this time it was "no errors". Good
luck.
Steve Foster
Circle of Friends Investment
Club
On Wednesday, February 26, 2025 at 10:43:26 AM PST, ira
smilovitz via bivio.com <user*2883400001@bivio.com>
wrote:
I don't use
TurboTax so I can't explain their error messages,
but the background is this: 13AE expenses are not
deductible on the federal return due to the changes
made with TCJA. However, not all states adopted
these changes. For the states that didn't conform
(eg, NY), these expenses are still valid itemized
deductions. I don't think MA allows many deductions,
so the entry perhaps should be ignored.
The 20B entry is
used to calculate allowable investment interest
expense on Form 4962. If you don't have investment
interest expense, you can ignore this entry.
In preparing my
2024 tax return, I am getting the following
error from Turbo Tax when processing my K-1. Box
13 contains
code AE with a dollar amount for expenses. The
same item and
dollar amount is also in Box 20 as Code B. This
data has
been entered into the tax software and looks
correct to me.
Any idea what the Turbo Tax message may be about ?
Is there
a workaround?
"Sch K-1 Wks-Partnerships (Massachusetts High
Flyers
Investment Clu) Sch K-1 Partnership Additional
Info 1: Other
deduction fields have no entry. A total of 92. has
been
entered for code(s) W to ZZ. Code(s) W to ZZ
require(s)
additional information. Please enter 92. on the
appropriate
line or lines in this section."
Len Delmolino
Massachusetts High Flyers Investment Club
--
Thanks,
Genie
(816) 516-3727
ira smilovitz on
Miscellaneous itemized deductions subject to a 2% AGI threshold were eliminated by TCJA (2017). However, the IRS recognized the need for partnerships (and other entities) to report this information for members who might still be able to deduct them on a state return.
Why is our subscription
cost to Bivio not an allowable deduction on the Federal Form? I
have the same question about paying for checks for club checking
account. These showed up in box 13 with the AE code.
Thank you!
Genie S
On 2/26/2025 1:15 PM, Steve Foster via
bivio.com wrote:
I got the same message Len.
I went to the FORMS area and selected the K1P Addl Info 1
form. Scroll down to Box 13 then to Code W to ZZ then to line
8 Other. I put in "Accounting software expense" as the
description and my portion of the bivio software expense on
the right (92 for you). I then went back to EASY STEP and ran
the error check again and this time it was "no errors". Good
luck.
I don't use
TurboTax so I can't explain their error messages,
but the background is this: 13AE expenses are not
deductible on the federal return due to the changes
made with TCJA. However, not all states adopted
these changes. For the states that didn't conform
(eg, NY), these expenses are still valid itemized
deductions. I don't think MA allows many deductions,
so the entry perhaps should be ignored.
The 20B entry is
used to calculate allowable investment interest
expense on Form 4962. If you don't have investment
interest expense, you can ignore this entry.
In preparing my
2024 tax return, I am getting the following
error from Turbo Tax when processing my K-1. Box
13 contains
code AE with a dollar amount for expenses. The
same item and
dollar amount is also in Box 20 as Code B. This
data has
been entered into the tax software and looks
correct to me.
Any idea what the Turbo Tax message may be about ?
Is there
a workaround?
"Sch K-1 Wks-Partnerships (Massachusetts High
Flyers
Investment Clu) Sch K-1 Partnership Additional
Info 1: Other
deduction fields have no entry. A total of 92. has
been
entered for code(s) W to ZZ. Code(s) W to ZZ
require(s)
additional information. Please enter 92. on the
appropriate
line or lines in this section."
Len Delmolino
Massachusetts High Flyers Investment Club
--
Thanks,
Genie
(816) 516-3727
Genie Shoffey on
Thank you, Ira for answering this question. You were always great at explaining and helping Club treasurers to understand what they need to know. I've been a treasurer for many years and have gained so much knowledge reading your replies on the newsletters. You are a treasure!
Miscellaneous itemized deductions subject to a 2% AGI threshold were eliminated by TCJA (2017). However, the IRS recognized the need for partnerships (and other entities) to report this information for members who might still be able to deduct them on a state return.
Why is our subscription
cost to Bivio not an allowable deduction on the Federal Form? I
have the same question about paying for checks for club checking
account. These showed up in box 13 with the AE code.
Thank you!
Genie S
On 2/26/2025 1:15 PM, Steve Foster via
bivio.com wrote:
I got the same message Len.
I went to the FORMS area and selected the K1P Addl Info 1
form. Scroll down to Box 13 then to Code W to ZZ then to line
8 Other. I put in "Accounting software expense" as the
description and my portion of the bivio software expense on
the right (92 for you). I then went back to EASY STEP and ran
the error check again and this time it was "no errors". Good
luck.
I don't use
TurboTax so I can't explain their error messages,
but the background is this: 13AE expenses are not
deductible on the federal return due to the changes
made with TCJA. However, not all states adopted
these changes. For the states that didn't conform
(eg, NY), these expenses are still valid itemized
deductions. I don't think MA allows many deductions,
so the entry perhaps should be ignored.
The 20B entry is
used to calculate allowable investment interest
expense on Form 4962. If you don't have investment
interest expense, you can ignore this entry.
In preparing my
2024 tax return, I am getting the following
error from Turbo Tax when processing my K-1. Box
13 contains
code AE with a dollar amount for expenses. The
same item and
dollar amount is also in Box 20 as Code B. This
data has
been entered into the tax software and looks
correct to me.
Any idea what the Turbo Tax message may be about ?
Is there
a workaround?
"Sch K-1 Wks-Partnerships (Massachusetts High
Flyers
Investment Clu) Sch K-1 Partnership Additional
Info 1: Other
deduction fields have no entry. A total of 92. has
been
entered for code(s) W to ZZ. Code(s) W to ZZ
require(s)
additional information. Please enter 92. on the
appropriate
line or lines in this section."
Len Delmolino
Massachusetts High
Leonard J Delmolino on
This sounds like the right solution Steve. However, I can't
finds the "Forms" area. I'm using the web version of TT
Premier. What version of TT are you using?
Thanks for your help Steve!
Len Delmoilino
Massachusetts High Flyers Investment Club
Leonard J Delmolino on
Thanks Ira - very helpful!
Len Delmolino
Massachusetts High Flyers Investment Club
Steve Foster on
I downloaded TT from their website to my computer. The FORMS link is in the top menu of items on the very left side of the TT window. If you have the TurboTax/File/Edit/View/Forms etc menu at the very top of the screen, select View and then Go To Forms should get you there. Still can't find it? Ask TurboTax for help on how to get to the FORMS area of your tax return. Good luck.
Steve Foster
Circle of Friends
On Thursday, February 27, 2025 at 11:25:13 AM PST, Leonard J Delmolino via bivio.com <user*27879700001@bivio.com> wrote:
This sounds like the right solution Steve. However, I can't finds the "Forms" area. I'm using the web version of TT Premier. What version of TT are you using?
Thanks for your help Steve!
Len Delmoilino Massachusetts High Flyers Investment Club
LEONARD DELMOLINO on
Thanks for the additional info Steve!
Len Delmolino
On 02/27/2025 2:56 PM EST Steve Foster via bivio.com <user*26719700001@bivio.com> wrote:
I downloaded TT from their website to my computer. The FORMS link is in the top menu of items on the very left side of the TT window. If you have the TurboTax/File/Edit/View/Forms etc menu at the very top of the screen, select View and then Go To Forms should get you there. Still can't find it? Ask TurboTax for help on how to get to the FORMS area of your tax return. Good luck.
Steve Foster
Circle of Friends
On Thursday, February 27, 2025 at 11:25:13 AM PST, Leonard J Delmolino via bivio.com <user*27879700001@bivio.com> wrote:
This sounds like the right solution Steve. However, I can't
finds the "Forms" area. I'm using the web version of TT
Premier. What version of TT are you using?
Thanks for your help Steve!
Len Delmoilino
Massachusetts High Flyers Investment Club
Laura Murray on
Ira,
Would it make sense not to enter BIVIO subscription as a
portfolio expense in the future in BIVIO (I've already done
our taxes)? If it's not listed as an expense, the amount
will not be deducted on the members' tax allocation reports.
The net profit would increase by the amount of the BIVIO
subscription and the members' tax basis would increase by
that same amount. As a portfolio expense, it's mostly
useless.
Laura Murray
IIG
ira smilovitz on
Laura,
It never makes sense to do anything that is in contradiction to the rules set forth by the IRS. It only exposes the club to errors down the line and potential questioning from the IRS.
Would it make sense not to enter BIVIO subscription as a
portfolio expense in the future in BIVIO (I've already done
our taxes)? If it's not listed as an expense, the amount
will not be deducted on the members' tax allocation reports.
The net profit would increase by the amount of the BIVIO
subscription and the members' tax basis would increase by
that same amount. As a portfolio expense, it's mostly
useless.
Laura Murray
IIG
Laura Murray on
Ira,
Thank you for the response. It makes sense. We've always entered the BIVIO subscription as an expense during the 25 years I've been the treasurer.
It never makes sense to do anything that is in contradiction to the rules set forth by the IRS. It only exposes the club to errors down the line and potential questioning from the IRS.
Would it make sense not to enter BIVIO subscription as a
portfolio expense in the future in BIVIO (I've already done
our taxes)? If it's not listed as an expense, the amount
will not be deducted on the members' tax allocation reports.
The net profit would increase by the amount of the BIVIO
subscription and the members' tax basis would increase by
that same amount. As a portfolio expense, it's mostly
useless.