Some items reported on your Schedule K-1 (Form 1065) may need to be entered directly into a specific form instead of the K-1 entry screen. Below is a list of items that are not entered directly into Form 1065, Schedule K-1 within the program. Please find the specific item within Box 11 that is reported on your Form 1065.
Code A- Other portfolio income (loss)
The partnership will report portfolio income other than interest, ordinary dividend, royalty, and capital gain (loss) income, and attach a statement to explain what kind of portfolio income you have.
This program does not support the option to add this to your individual tax return.
Code B- Involuntary conversions
This is your net gain (loss) from involuntary conversions due to casualty or theft. The partnership will give you a statement that shows the amounts to be reported on Form 4684, Casualties and Thefts, line 34.
To enter this within the program, please go into the Federal Section > Deductions > Itemized Deductions > Less Common Deductions > Casualties and Losses. Please make sure you state this is business property, as it is directly related to your partnership.
Code C- Section 1256 contracts and straddles
The partnership will report any net gain or loss from section 1256 contracts. Report this amount on Form 6781, Gains and Losses From Section 1256 Contracts and Straddles.
To enter this within the program, please go into the Federal Section > Income > Less Common Income > Gains and Losses From Section 1256 (Form 6781).
Code D-Mining exploration costs recapture
The partnership will give you a statement that shows the information needed to recapture certain mining exploration costs (section 617).
This program does not support the option to add this to your individual tax return.
Code E- Cancellation of debt
Generally, this cancellation of debt (COD) amount is included in your gross income (Form 1040, line 21).
To enter this within the program, please go into the Federal Section > Income > Less Common Income > Cancellation of Debt (1099-C, Form 982).
Under section *108(b)(5), you may elect to apply any portion of the COD amount excluded from gross income to the reduction of the basis of depreciable property. Enter this within the above mentioned location.
*Election under section 108(b)(5). Any member that realizes excluded COD income may make the election described in section 108(b)(5). The election is made separately for each member. Therefore, an election may be made for one member that realizes excluded COD income (either actually or pursuant to paragraph (a)(3) of this section) while another election, or no election, may be made for another member that realizes excluded COD income (either actually or pursuant to paragraph (a)(3) of this section). See §1.108-4 for rules relating to the procedure for making an election under section 108(b)(5). Source
Code F- Section 743(b) positive adjustments
The partnership should use this code to report your share of income/gain that comes from your total net section 743(b) basis adjustments. This code will let you know if you should adjust your basis and by how much. This will not be reported on the 1040.
Source: IRS Form 1065, Schedule K-1 Partnership Instructions