Help understanding K1

[mm340]

Every year for the past 3 years we receive a K-1 from an LLC my husband is part of. I am so confused about how to enter since it has both business and rental income.  Turbo Tax recommends I treat them as two separate K1s. Do I fill in all the boxes starting at Box 3 for each one? Specifically Box 20 has a code A and Z. Or where can I learn more about K1 so I wont be so confused next year again? Thanks

[PatriciaV · Accepted solution]

If your Schedule K-1 has amounts in both Box 1 and Box 2, you will need to add another K-1 to report Box 2 only.

Enter all the information from Part I and Part II of the K-1 on both copies. Include all information from Part III on the first copy - except for the amount in Box 2. The second copy should have only the amount in Box 2 from Part III.

If, however, you received additional information with Schedule K-1 that provides the breakdown of the amounts in the other boxes, use this info to split the other box amounts between the K-1s. Otherwise, follow the instructions above.

Be sure to check Box 20 Code Z for both K-1's if you received Statement A Section 199A information (QBI) both businesses.