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Entering Box 1 from Schedule K1 form 1065

Using Turbotax home and Business .  When I enter  1065 K1  that has box 1 information ordinary business income (loss)  (but not box 2 or 3)  into the program, TurboTax easy step asks what type of partner I am, in this case the answer is a  limited partner  and then proceeds to ask what boxes of the K1 have information in it, but only for boxes 4- 20.  It does not ask for the information in box 1 

If the number in box 1 is a loss  that comes from a lower tier partnership, should that be entered in the forms mode to keep track of passive losses or do I keep separate track of it for basis? 

Why does TurboTax ignore that box?  It is hard to believe that the information is totally irrelevant.  What am I not understanding?

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3 Replies
JamesG1
Employee Tax Expert

Entering Box 1 from Schedule K1 form 1065

Is this a partnership whose income is reported in a subsequent 'higher tier' partnership?  Please clarify.

 

In TurboTax H & B, I follow these steps to enter a partnership K-1.  

 

  • At the screen Tell Us About Your Schedule K-1, click to the right of Partnerships / LLC's.
  • At the screen Enter Partnership Name and Address, enter the information.  Click Continue.
  • At the screen Choose the Type of Partner, click Continue.
  • At the screen Choose the Type of Partner, select Limited Partner.  Click Continue.
  • At the screen Choose the Type of Partner, select Domestic Partner.  Click Continue.
  • At this time, no entries are required for the ownership screens.  Click Continue.
  • At the screen Describe the Partnership, select None of these apply.  Click Continue.
  • At the screen Choose Type of Activity, select Business - Box 1.

How do your specific details differ?  Please clarify.

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Entering Box 1 from Schedule K1 form 1065

Thank you for your answer.  I enter all the information as you laid out, however since the partnership is an investing holding company I choose "Other"  rather than "business".  What I have done in the past is then enter the box 1 info directly into forms and do not check the active participation, but I'm not sure that this is correct way either  

 

JamesG1
Employee Tax Expert

Entering Box 1 from Schedule K1 form 1065

I now understand.  The choice of 'Other' at the screen Choose Type of Activity is the reason that box 1 was not generated.

 

@TTAX25 

 

 

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