How to break up to enter each different k-1 into TT since TT is giving error requiring 1 k-1 to be input for each type of business (I'm using fictitious numbers but a copy of the k-1 for a supposed person with a lot more shares is https://s1.q4cdn.com/xxxxxxxxx/files/doc_financials/2019/PTP_307111_SAMPLEPARTNERA_K1_2018_FED.PDF). Note this is a publicly traded partnership purchased via a broker. Can anyone explain how many k-1's need to be input into TT to separate the different types of income and how to deal with the footnotes the boxes are no problem themselves, just trying to eliminate the errors as I did it as 1 k-1?
Box 1 100
Box 5 700
Box 6a 900
box 6b 800
Notes Your share of dividends from domestic corporations eligible for the 50% dividend received deductions included in line 6A is 800.
box 9a 400
box 10 300
notes: Your share of US effectively connected Income for Net section 1231 gains is 200
box 11 has 11F=200, 11H=100, 11I5=100,
Notes The following amount included in Line 11I5 Other income attributable to the sale of exchange of capital assets held more than one year but not more than three years that may be considered as ST capital gain pursuant to IRC Section 1061(A) is 100
box 13H 100
Notes the amount of line 13H is derived from 2 activities: The amount derived from trade or business is $100, The amount derived from investment activities is $0.
Box 16 A=Various, B=3100, C= 400, D=200, F=500, 16I=100, 16M=100, 16U=200
Box 19 A= 6400
Box 20 A=1600, N=100 , V7=200, AG=2200, AH1=4400, AH2=700, AH3=33300, AH4=38400
In box 16, (D and F) conflict. Since there is no foreign taxes paid code (P), then I suggest dispensing with all foreign transactions.
If you choose to do this, then in Forms Mode, in the left pane, click on the k-1 partner to bring it up on the right pane. Scroll down to 17 and just above it there is a quickzoom to add additional foreign tax info. Click on it and it will bring up the additional info wks. Scroll down to "Box 16: foreign transactions." Then under "Code P, Q, etc ", locate line 3a. It states "do you elect to forego completion of f1116." Check mark the Yes box. That will clear any errors related to foreign transactions. .
In box 16, (D and F) conflict. Since there is no foreign taxes paid code (P), then I suggest dispensing with all foreign transactions.
If you choose to do this, then in Forms Mode, in the left pane, click on the k-1 partner to bring it up on the right pane. Scroll down to 17 and just above it there is a quickzoom to add additional foreign tax info. Click on it and it will bring up the additional info wks. Scroll down to "Box 16: foreign transactions." Then under "Code P, Q, etc ", locate line 3a. It states "do you elect to forego completion of f1116." Check mark the Yes box. That will clear any errors related to foreign transactions. .
and I went through this over and over and totally missed there was no fgn taxes paid...Thanks so much! I'm not sure I want to keep holding these shares, what a pain.
@rogge1722 @maglib - Are you saying that you have multiple K-1s? What you entered with box 1 ordinary business income says that it would be a single K-1 (no box 2 rental income - as that trigger the need to create two out of one K-1).
Boc 5 is simple interest and 5 dividends get combined in 1040 with other int/div
Box 9 are L/T C/G or C/L that will go to Schedule D
Line 10 is showing a C/G income which carries a lower C/G C/L tax rate, not the 15/20.
Line 11 entries will most likely have no effect on your return intangible income
Line 13 H is deductible interest expense will generate a Form 4952 - but if under TCAJ most likely not deductible
RE: Foreign Taxes - Line 16 does not have an entry "P"?? meaning no taxes paid, so the rest is just declaration of foreign income sourced by partnership. Are you sure no P entry? if it was there could use it onForm 1116
Line 19 is a summary of income
Only important Line 20 entry would be "AD" code as that is the Section 199A 20% income exclusion - you did not indicate this was present
we got 1 k-1, TT kept giving an error message that we had to file multiple k-1 for each type of income. it was strange. TT appears to be putting income on right line items now and yes, it was missing the foreign taxes paid.... I think I was just too upset with the error, thinking I had to file it as multiple k-1's which ends up not the case. Thank you.
most welcome
PTP K-1's - dinner with an acquaintance last week - he does small business cpa work (I think mostly LLC/1065) and for the owners their personal 1040s. We got to talking about how he hates PTP K-1's - can't charge enough to recover his time and for @TurboTaxCheriS and @TurboTaxGabi benefit, he uses Lacerte (not ProSeries) and finds the handling in Lacerte not only difficult but arcane. So dinner was totally dominated to that topic. We also talked about how financial advisors have been pushing MLPs in general now as a way to goose up income. The latest onew you will see sometime in the next month - offerings from ML, Wells, anbd others: Municipal Bond Investment Limited Partnerships - try to marry tax-exempt income with MLP write-offs - TCAJ has become the full employment act for CPAs and the sharp-pointed incentive to financial advisors to find a way around TCAJ as it hits the upper-middle income taxpayer on east/west coasts.
@Scruffy_Curmudgeon 199(a) is one of the worst written tax laws I've seen with so much circuitous stuff, also what is basis rules, high income earners, why would I call a property 199(a) if I have a loss, why not claim 1 is that makes money and claim the other rentals are not. I've seen people claiming rentals as 199(a) that don't have expenses and don't comprehend why I say they'll be audited... I'm sick of it all. (then add the new laws for trustee fees).
It's what happens when a Congress turns over every law-writing to idealogues with zero education in finance or tax law and with the mission to benefit a particular economic class to the disadvantage of all others, but tries to make it pretty by putting out some benefits without thinking through how the provisions will work. We were discussing last week how the Sec 199A provisions are self-contradictory in some instances, and leave loads of folks scratching their heads as to how the provisions do or do not apply to them.
we just decided to ignore 199(a) this year as we have NOL when properties are combined, individually some make money and based on law, we did think about claiming the 2 making money as 199a and the one not.... we decided to forgo the benefit and see what the future holds.
Anyone able to fix this issue with k-1 from The Blackstone Group in turbo tax online. Quick Zoom doesn't work and i not able to view the worksheets to make the change.
@python see @rogge1722 response. that worked it was because there was no fgn taxes paid...
@maglib I tried to follow the steps in roggle1722's response but i don't see a way to bring up the worksheets to check "do you elect to forego completion of f1116." Quick zoom doesnt work and i dont see any other option. This is in the online version.
An alternative would be to split the K-1. Since 16 D and F conflict, enter a complete K-1 with everything except 16F. Then enter a second with just 16F. TTs normal processing should then work.
@nexchap if i split into second K1 for 16F, do i need to enter all the amounts in Box 1,5,6 etc in the second K1?
@python : no -- you'd leave every box blank except 16F (the total of the 2 K-1s will equal what you received). This is just like the TT instructions requiring you to split box 1, 2 and 3 across separate K-1s.
My Blackstone K-1 has values for 16D, F, M and Q. Setting 3a to Yes and removing link in 3b just pushes the problem down to 4a. 1116 is paid taxes and 16Q is accrual. How to resolve/get it to populate correctly?
@davidadempsey: Since you actually have taxes to get credit for, split 16D and F as suggested above. Though in looking at what I wrote, probably better to put 16D alone on its own K-1 so that 16Q and 16F can stay together.
Thank you very much. 16M stays with 16F then, or doesn't matter?
16M and 16F are both passive category, so keep them together
funny how my k-1 didn't have any fgn taxes paid but someone elses does.?!?! Yet I had fgn income.
Is Code P - Taxes paid ? I also have 0 for it. Cod Q- Taxes accrued has a amount.