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10086: 1040 - K1F Negative Entries


1040 Individual

Why can't I enter a negative number on the K1F screen in a 1040 return?

 

Losses can only be reported in the final year of a 1041 fiduciary return. Per the 1041 Instructions

"You can't show any negative amounts for any class of income shown in boxes 1 through 8 of Schedule K-1. However, for the final year of the estate or trust, certain deductions or losses can be passed through to the beneficiary(ies). See the instructions for box 11 for more information on these deductions and losses."

When the final return is completed, and the K1 issued, final year deductions will appear in box 11 as positive numbers (and be entered on the K1F in the 1040 package as positive numbers).

To summarize, the following limitations apply to the data entry screen K1F

  • Lines 1-11 and 13 can only be entered as positive values.
    • Lines 1-8 are income or gain lines.
    • Lines 9-11 are deduction lines, however, the amounts should also be entered as positive values. These amounts will reduce the income as appropriate.
    • Line 13, credits and credit recapture, is only allowed to be entered as a positive number as you cannot have a negative credit. 
  • Lines 12 and 14 do allow negative values, if applicable.

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