I have experience with Trusts K-1s but this is the first time with a partnership K-1. Thought it would be straight forward but apparently not. This is first time in 25 years using TurboTax that I have been confused. It seems to be double counting my K-1 gain. I end up with almost 40% additional taxes after entering the K-1 data (a LT gain of $13,141) with everything else complete. Maybe it is correct but that seems to be excessive. What I have:
1) Before entering the K-1:
I owe Fed: $1,441 and State: $244.
2) After entering the "Regular Gains (Losses)"
Sale Price: $33,333 ($400,000/12)
Selling Expense : $2,379 ($28,551.90/12)
Partnership Basis: $17,813 (30,954 (selling price) minus $13,141 (capital gain))
My taxes owed increases to Fed: $3,412 and State: $759
3) After entering the K-1 boxes 1-20 (where applicable), my taxes owed again increases to:
Fed: $5,383 and State: $1,274
I'm basically reporting the same information in steps 2 and 3 but being hit with extra taxes both times. Do I need to report steps 2 and 3 or can I just chose to enter the box data (step 3) and skip step 2? Any help would be appreciated !! Thank you.
