Why is Schedule K-1, Line 20AG not populating for the 59A(e) but is for 448(c) in a 2020 Partnership return?

  • Article Type:
  • QA
  • Last Modified:
  • 02/09/2021

Question

Why is Schedule K-1, Line 20AG not populating for the 59A(e) but is populating for 448(c) in a 2020 1065 return?

Environment

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Answer

Section 59A(e) will no longer flow to Schedule K-1, Line 20AG because the IRS has moved this to report on the Schedule K-1, Lines 16AA, BB, CC. Starting in tax year 2020, all partnerships are subject to the gross receipts test.

  1. When there is gross income, a statement for Section 448(c) will print on Schedule K, Line 20C. This will flow to Schedule K-1, Line 20AG.  
  2. Go to Foreign > Foreign Taxes worksheet.
  3. Expand Section 1 - Foreign Tax Information.
  4. In Line 1 - Foreign country, select applicable country code from the drop-down field. 
  5. Expand Section 8 - Additional Foreign Tax Information.
  6. In Lines 1-4. 448(c), input applicable 159A-7(e)(2) amount for the applicable current and prior year.
    • Input is used for 163j calculations by the partners and will only include trade or business gross receipts.
    • Amounts do not include farm, rent, or depletion gross receipts.
    • This information is provided for to all partner types.
  7. Calculate the return.


Override: Income/Deductions>Schedule K Income/Deduction Overrides>Schedule K Overrides>Schedule K- Other Items>Line 21 (K-11A, box 34).

Manual Overrides:

  1. Partners > Schedule K-1 Overrides worksheet.
  2. Select applicable partner.
  3. Select Detail.
  4. Expand Section 1 - Federal or State Code and Partner Name
  5. In Line 1 - Federal, State or City Code, select FD.
  6. In Line 2 - Partner number - verify applicable partner number is populated.
  7. Expand Section 21 - Other Information.
  8. In Line 42 - L20AH Other Information (Use if not using detail), input applicable amount.
  9. Repeat steps 5-8 for any additional partners.
  10. Calculate the return.

Additional Information

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