discrepancies between K-1 line 2 and 8825 line 21

[jesunattt]

I received a K-1 which has line 2 amount  (Net Rental Real Estate Income(loss)) which is different from 8825 line 21 amount (big difference). Could you help if there is a way to input the different amounts or I need to go back to my K-1 issuer to get it corrected? Thank you!

[tagteam · Accepted solution]

If there is an error, you would need to contact the issuer.

I am assuming the issuer is not you, but then again if the issuer is not you, I am left wondering how you managed to get the 8825 (or at least the amount from Line 21 of the 8825). 

[JulieS]

No, you should not try to correct this yourself. If this amount is wrong, it needs to be corrected by the K-1 issuer. 

There are a number of reasons why the number from Form 8825 would not match what is on your Schedule K-1. The most obvious one is that your ownership percentage applies to the total rental income or loss.

There may also be limitations on the amount of loss allowed, or in the figure is positive, it may have been offset by prior year losses. 

[jesunattt]

Hi, Julie,

Thanks for replying. 

If the difference between K-1 line 2 and 8825 line 21 is correct (due to various reasons), how do I make the entry in TT business? Current TT business won't allow me to input different amounts between these 2 lines. I'm sure the K-1 line 2 number is correct. If I make change to 8825 line 21 to reflect the original K-1 8825 line 20a/21, TT business will change the number on my new K-1 line 2. Please advise.

[tagteam]

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@jesunattt wrote:

Current TT business won't allow me to input different amounts between these 2 lines. I'm sure the K-1 line 2 number is correct. If I make change to 8825 line 21 to reflect the original K-1 8825 line 20a/21, TT business will change the number on my new K-1 line 2.

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Why on earth are you using TurboTax Business to "correct" a K-1 you received, presumably that was generated by another party (the issuer)? Doing so is simply improper.

If you need to change the 2 lines, you will have to do an override (not recommended) as the program is almost certainly returning the correct result.

[jesunattt]

Hi, Julie,

Could you advise how to make entries in TT business if K-1 box 2 and 8825 line 20a/21 are different? Thanks!

[tagteam]

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@jesunattt wrote:

Could you advise how to make entries in TT business if K-1 box 2 and 8825 line 20a/21 are different? 

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You can continue asking, but the answer will not change; you will have to use Forms Mode and do an override.