Can't enter K3 (Form 1065) form without errors

v8899 · Aug 21, 2025 3:51:06 PM

My K1 (Form 1065) only has line 8 - Net short-term capital gain (loss): $-102. There is a K3 attached.Part II - Section 1 [Gross Income] is all blank, there is just a $0 on line 24 column (g) Total. Part II - Section 2 - [Deductions] has $102 on line 27 [Net short-term capital loss] in column (c) Passive category incomePart II - Section 2 - [Deductions] has $102 on line 54 [Total Deductions] in column (c) Passive category income After entering it into TurboTax, I get this error: Sch K-1 Wks-Partnerships (XYZ FUND NAME): Deductions - Passive Category (Line M) is entered but no foreign source income for passive category has been entered (line M). Enter the income on Lime M or remove the deduction. Not sure how to fix this, there is no income to enter, only a capital loss.

My K1 (Form 1065) only has line 8 - Net short-term capital gain (loss): $-102.

There is a K3 attached.

Part II - Section 1 [Gross Income] is all blank, there is just a $0 on line 24 column (g) Total.

Part II - Section 2 - [Deductions] has $102 on line 27 [Net short-term capital loss] in column (c) Passive category income

Part II - Section 2 - [Deductions] has $102 on line 54 [Total Deductions] in column (c) Passive category income

After entering it into TurboTax, I get this error:

Sch K-1 Wks-Partnerships (XYZ FUND NAME): Deductions - Passive Category (Line M) is entered but no foreign source income for passive category has been entered (line M). Enter the income on Lime M or remove the deduction.

Not sure how to fix this, there is no income to enter, only a capital loss.

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