Procedure to report K-1 Form 1065

[hscarfo]

Form 1065 K-1 has small amounts in both box 1 & 3. Turbo Tax states two K-1's should be recorded when this occurs. This doubles the tax liability on a single reported distribution in line 19 & line 20. This is an amended return for a late arriving tax document. This doesn't seem to be a correct treatment. Is reporting 2 K-1's for a single distribution a correct procedure? "

[Rick19744 · Accepted solution]

You need to have two separate K-1 inputs as recommended by TT.  However, one input you will enter all K-1 items except box 3.  The second K-1 input will be ONLY box 3.

There should not be any doubling of tax if handled as noted above.  The reason for separating the K-1 information like this is so the rental real estate can be handled appropriately.