Data entry for Schedule K-1, Box 20, Code AJ
A Schedule K-1 from a 1065 partnership that has an amount in Box 20 and code AJ is for Excess business loss limitation. It's the total income, gain, and deductions from all that partnership's trade or businesses that can be used to figure the excess business loss limitation.
The loss limitation is calculated on Form 461 after the basis, at-risk, and passive activity limitations. Enter adjustments for Form 461 on the
OtherAdj
screen in the 1040 Adjustments
folder.For more information, review the Schedule K-1 Partner's instructions.
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Loss limitation calculations
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