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16597: 1065 - Schedule K1 - Boxes 21 and 22


1065 Partnership

How do I check box 21 and/or 22 on Schedule K-1?

 

The K1 Instructions contain the following information about the purpose of these boxes: 

  • Box 21. More Than One Activity for At-Risk Purposes When the partnership has more than one activity for at-risk purposes, it will check this box and attach a statement. Use the information in the attached statement to correctly figure your at-risk limitation. For more information see the discussion on At-Risk Limitations earlier.
  • Box 22. More than One Activity for Passive Activity Purposes When the partnership has more than one activity for passive activity purposes, it will check this box and attach a statement. Use the information in the attached statement to correctly figure your passive activity limitation. For more information see the discussion on Passive Activity Limitations earlier. 

 

The IRS delayed the reporting requirement for indicating more than one activity for at-risk or passive activity purposes on Schedule K-1 in Notice 2019-66The requirement effective date was delayed to taxable years beginning after January 1, 2020. Following that guideline, in Drake19, the boxes are present on the form in view mode, however, you cannot make an entry in either box.

In Drake20, checkboxes for boxes 21 and 22 are available on the BAS screen. The required statement attachment will be produced when multiple business activity screens (BAS) are completed (Press Page Down to open a new screen.) Information provided in the statement should be used by the partner to correctly figure at-risk limitations in the individual return.

For more information about at-risk and passive activity limits, see Related Links below. 


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