Clarifications for the 2019 Partner’s Instructions for Schedule K-1 (Form 1065)

 

Pages 9 and 12:
Code F. Section 743(b) positive income adjustments. The partnership will use this code to report the net positive income adjustment resulting from all section 743(b) basis adjustments. The partnership will provide your section 743(b) adjustment net of cost recovery at year end by asset grouping in box 20, code AH. 

Code V. Section 743(b) negative income adjustments. The partnership will use this code to report the net negative income adjustment resulting from all section 743(b) basis adjustments. The partnership will provide your section 743(b) adjustment net of cost recovery at year end by asset grouping in box 20, code AH. 

Page 18: 
Code AA. Section 704(c) information. The partnership will show the portion of income or deduction items allocated to you under section 704(c). This is for information purposes only. These items are included in other income or deduction items on the Schedule K-1 (Form 1065). 

Pages 18 and 19:
Code AH. Other information. Under this heading, a numbered paragraph should be included which reads: The partnership will provide your section 743(b) adjustment net of cost recovery, by asset grouping.