"Partner" Health Insurance

Technical topics regarding tax preparation.
#1
CAErinB  
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Carlsbad, CA, United States
I'm preparing an 1120S for an S-corp that is a general partner of an LLC taxed as a partnership. On the K-1 issued to the S-corp is the following:

Schedule K-1 Line 20AH - Additional Supplemental Information
Health insurance $24,606
401K Plan Elective Deferral and Match $34,700


The partnership does have W-2 wages but, obviously, the S-corp is not an employee. How should I handle the above?

Thanks so much for your help!
 

#2
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I assume that the K-1 from the partnership does not have an amount for box 13 codes M or R, correct? If that's true, then I would ignore the 20AH.
 

#3
Doug M  
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The health insurance was paid by the LLC, most likely this is not deducted by the LLC and was classified as a partner distribution. This should be deducted on the S' corp return.

As to the elective deferrals, this is reflected on the W-2. Non event. The match is a deduction to the S corp. The LLC, most likely, treated as a distribution.

Ask for the distribution workpaper/QB file, etc for the distributions made during 20XX year.
 

#4
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Hopefully, you'll be able to tell whether the health insurance and pension amounts were deducted (included in the normal boxes of the K-1), by comparing the Partner's Capital Account Analysis (item L) to the income & deductions in the other K-1 boxes.
 

#5
sjrcpa  
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beardenjv wrote:I assume that the K-1 from the partnership does not have an amount for box 13 codes M or R, correct? If that's true, then I would ignore the 20AH.

If no 13M or R I agree.
It could be user of the software error. Perhaps the 20AH amounts were supposed to be specially allocated the same way the 401(k) and insurance were.
 


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