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Drake Software User’s ManualSupplemental Incometo Form 5329. To do so, go to the desired 1099 screen and select the applicable boxunder Special Treatments for this Distribution (Figure 5-24).Figure 5-24: Select box to carry 1099-R data to Form 5329ExceptionNumbersOn the 5329 screen, exception numbers 01 and 06 (Part I, line 2) apply only to distributionsfrom qualified employee plans—not to those from IRAs, annuities, or modifiedendowment contracts. To view full descriptions of each exception number, placethe cursor in the Exception number field and press F1.Supplemental IncomeEntry fields for Schedule E, Supplemental Income and Loss, are located in the SchedulesE and K1 section of the Income tab.Figure 5-25: Screens for entering Schedule E dataSchedule EScreen code: EUse screen E, accessible from the Income tab, to complete Page 1 of Schedule E (PartI: Income or Loss From Rental Real Estate and Royalties). Page 2 of Schedule E(Parts II through V) is calculated from K-1 schedules. The corresponding screens inDrake (E2, E3, and E4) primarily contain override fields; data entered here overridesamounts that would otherwise flow from the K-1. Enter data on one of these screensonly if you are transferring the information from a Schedule E that has already beencalculated and completed by hand.NEW FOR2008The E screens contain new activity-type drop lists to select whether anactivity is passive or non-passive. If option D (not a passive activity) isselected and EIC is involved, the program prints “NPA” on the appropriateline of Schedule E. For more on selecting activity types, see “ActivityTypes” on page 105.Tax Year 2008 103