On Schedule K-1 (Form 1065) Partner’s Share of Income, Deductions, Credits, etc, Box 20 is designated for "Other Information". The TaxAct® program has entry fields for the following items that may have been reported to you in Box 20.
- Tax and interest on 409A nonqualified deferred compensation plan (This amount will transfer to Schedule 2 (Form 1040) line 7a)
- Qualifying advanced coal project basis - Sec. 48A(d)(3)(B)(i)
- Qualifying advanced coal project basis - Sec. 48A(d)(3)(B)(ii)
- Qualifying advanced coal project basis - Sec. 48A(d)(3)(B)(iii)
- Qualifying gasification project credit basis (75% emissions)
- Qualifying gasification project credit basis (other)
- Qualifying advanced energy project credit basis
- Conservation reserve program (CRP) payments
- Qualified business income (QBI) deduction - Sec. 199A
If you have other information reported to you in this box, please see the information below.
Per IRS Instructions for Form 1065 U.S. Return of Partnership Income (used when the Partnership does their return which created the Schedule K-1 you received), on page 53:
Other information (code AH). Report the following to each partner.
- Attach a statement showing each remaining section 743(b) basis adjustment making up the total and identify the asset to which it relates. Show the section 743(b) adjustment net of any cost recovery to which it relates. A reasonable grouping by asset category may be used, but such grouping should not be less detailed than the asset categories listed on the Schedule L balance sheet. See Section 743(b) positive income adjustments (code F) and Section 743(b) negative income adjustments (code V). earlier. Also see IRS.gov/forms-pubs/clarifications-for-disregarded-entityreporting-and-section-743b-reporting.
- Any information a partner that is a PTP may need to determine if it meets the 90% qualifying income test of section 7704(c)(2). Partners are required to notify the partnership of their status as a PTP.
- If the partnership participates in a transaction that must be disclosed on Form 8886, both the partnership and its partners may be required to file Form 8886. The partnership must determine if any of its partners are required to disclose the transaction and provide those partners with information they will need to file Form 8886. This determination is based on the category(s) under which a transaction qualified for disclosures. See Form 8886 and its instructions for details.
- • Compensation to partners deferred under a section 409A nonqualified deferred compensation plan that doesn't meet the requirements of section 409A. Include in this amount any earnings on these deferrals. This amount must also be included on line 4 of Schedule K, Guaranteed payments. For details, see the regulations under section 409A. These regulations don't provide guidance on the application of section 409A to arrangements between partnerships and partners. For interim guidance on such arrangements, see Q&A-7 in Notice 2005-1, 2005-2 I.R.B. 274, and the information provided in the preamble to these regulations (T.D. 9321). Also see Notice 2006-79, 2006-43 I.R.B. 763; Notice 2007-86, 2007-46 I.R.B. 990; and Notice 2008-113, 2008-51 I.R.B. 1305, for additional information on transitional and relief rules.
- Noncash charitable contributions. If the partnership made a noncash charitable contribution, report the partner’s share of the partnership’s adjusted basis of the property for basis limitation purposes.
- Any income or gain reported on lines 1 through 11 of Schedule K that qualifies as inversion gain, if the partnership is an expatriated entity or is a partner in an expatriated entity. For details, see section 7874. Attach a statement to Form 1065 that shows the amount of each type of income or gain included in the inversion gain. The partnership must report each partner's distributive share of the inversion gain in box 20 of Schedule K-1 using code AH. Attach a statement to Schedule K-1 that shows the partner's distributive share of the amount of each type of income or gain included in the inversion gain.
- Qualifying advanced coal project property. Attach a statement to Schedule K-1 showing the partner's distributive share of the amounts that the partner will use when figuring the amounts to report on lines 5a through 5c of the partner's Form 3468. See the Instructions for Form 3468 for details.
- Qualifying gasification project property. Attach a statement to Schedule K-1 showing the partner's distributive share of the amounts that the partner will use when figuring the amounts to report on lines 6a and 6b of the partner's Form 3468. See the Instructions for Form 3468 for details.
- Qualifying advanced energy project credit. Attach a statement to Schedule K-1 showing the partner's distributive share of the amounts that the partner will use when figuring the amount to report on line 7 of the partner's Form 3468. See the Instructions for Form 3468 for details.
- The information needed to complete Schedule P (Form 1120-F), List of Foreign Partner Interests in Partnerships, on an attached statement for a partner that is (a) a corporation (identified as a foreign partner under Regulations section 1.1446-1(c)(3)); or (b) a partnership (domestic or foreign) if you know, or have reason to know, that one or more of the partners is a foreign corporation.
If the partnership allocates effectively connected income to the partner, provide the information needed to complete lines 1 through 10, 13, 14, 15b, 17a, 17b, and 18 of Schedule P (Form 1120-F). If the partnership doesn't allocate effectively connected income to the partner, provide the information needed to complete lines 13, 14, and 18 of Schedule P (Form 1120-F). The information must be provided in a format that references the specific line numbers on Schedule P for which the information is provided. For more information, see the Instructions for Schedule P (Form 1120-F).
Exceptions. The statement isn't required in the following situations.
- The direct or indirect foreign corporate partner provides the partnership with a valid Form W-8BEN or Form W-8BEN-E (within the meaning of Regulations section 1.1446-2(b)(2)(iii)) on which the corporation claims an exemption from U.S. tax by operation of an income tax treaty or reciprocal agreement on the grounds that none of the income is attributable to a permanent establishment of the partner.
- The partnership doesn't allocate any effectively connected income to the partner (foreign corporation or partnership) and the partnership receives a written statement from the partner (corporation or partnership) indicating that the information isn't needed to determine its (or its direct or indirect partner(s)) U.S. federal income tax liabilities.
- The partner's distributive share of any conservation reserve program payments made to the partnership.
- If the partnership has deductions attributable to a farming business and receives an applicable subsidy. The partnership should report the aggregate gross income or gain and the aggregate deductions from the farming business and any information the partners need to comply with the limitation on excess farm losses of certain taxpayers under section 461(j).
- If a partnership is a trader in securities, commodities, or both, and has properly elected under section 475(f) to mark to market the securities, the commodities, or both, the partnership should report ordinary gain or loss from the securities or commodities (or both securities and commodities) trading activities separately from any other ordinary gain or loss.
- Transfer of the partnership interest by a foreign partner. If a partner that is a nonresident alien or foreign corporation has gain or loss from the sale, exchange, or other disposition of its partnership interest, provide, on an attached statement, any information that the partner may need to determine effectively connected gain or loss under section 864(c)(8).
- If the partnership is a section 721(c) partnership, line 20c must include the amounts relating to any remedial items made under the remedial allocation method (described in Regulations section 1.704-3(d) and Regulations section 1.704-3(d)(5)(iii)) with respect to section 721(c) property. Enter a separate code AH in box 20 of Schedule K-1 for each amount for items allocated to the partner. For the U.S. transferor, enter a separate code AH, if any, for the total remedial income allocated to the U.S. transferor, total gain recognized due to an acceleration event, and/or total gain recognized due to a section 367 transfer reflected on Schedule G (Form 8865), Part II, columns (c), (d), and (e), respectively. For all other partners of the section 721(c) partnership, enter a separate code AH for the total amount of remedial items allocated to such partner relating to section 721(c) property. See Regulations sections 1.721(c)-3 and 1.721(c)-6.
- Provide the necessary information to each partner for its calculation of the deduction under section 250.
- Any other information the partners need to prepare their tax returns, including information needed to prepare state and local tax returns.
Some TaxAct users have reported receiving the following definitions for various text descriptions in Box 20 Code "AH" entries; however, to determine if the definitions are the same for your entries, you would need to contact the issuer of your K-1.
- Gross Receipts - This information is required to be reported for use by not-for-profit organizations. It should be disregarded by individuals.
- Depletion Included in Box 1 - This is for reference only. Nothing to report on the return.
- State Bonus Depreciation Addition - This is information for state returns when that state conforms to bonus depreciation.
To enter or review your Schedule K-1 (Form 1065), Box 20, Code "AH" entries:
- From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
- Click Business Income in the Federal Quick Q&A Topics menu to expand, then click Partnership income (Form 1065 Schedule K-1).
- Click + Add Partnership Schedule K-1 to create a new copy of the form or click Edit to review a form already created.
- Continue with the interview process to enter all of the appropriate information.
- On the screen titled Partnership - Schedule K-1 Information, check Box 20 - Other information, then click Continue.
- On the screen titled Partnership - Other Information, click Yes.
Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.