Form 1041 for Trust, K-1 Income, How to Enter Both Box 1 (Ordinary Business) AND Box 2 (Net Rental Real Estate) Income

[lzedatTT]

I need help. Experimenting with TurboTax Business 2022 (downloaded) for a Trust Form 1041. Trying to input income data from a K-1 to be received by the Trust. This K-1 has BOTH Box 1 (ordinary business income) and Box 2 (net rental real estate income) to be entered into TurboTax. It seems like I can enter either Box 1 info OR Box 2 info, but NOT both. I suppose I can separately enter Box 1 income as the first received K-1 and then enter Box 2 income AS IF received from a second K-1, but that seems kludgy. Any more elegant solutions?

[VolvoGirl]

I think that's the way to do it.  Enter it as separate K-1.

[Mike9241]

kludgy is the only way to go in Turbotax. 

[tagteam · Accepted solution]

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@lzedatTT wrote:

......I suppose I can separately enter Box 1 income as the first received K-1 and then enter Box 2 income AS IF received from a second K-1, but that seems kludgy. Any more elegant solutions?

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Not really. The method you suggested is the one that needs to be used by the TurboTax program.

Even if you try to enter both income items on one K-1 in Forms Mode, the program will throw a flag.

[lzedatTT]

Yes - that was the response from TurboTax when I tried to enter both Box 1&2 income using the 'Forms' mode entry method. I suppose I will accept the inevitable, thanks. 

[Critter-3]

OK ... if you get a K-1 form with box 1 & box 2 entries then in the TT system you will enter the K-1 twice ... on the first form you will enter everything EXCEPT box 2 on one form  and  ONLY box 2 in the second form entry.  The program will automatically marry them together.  

[lzedatTT]

I'll give that a try, I was mildly perturbed to have two K-1 Worksheets and QBI forms for the single K-1. Thanks for the suggestion.

[tagteam]

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@lzedatTT wrote:

I'll give that a try, I was mildly perturbed to have two K-1 Worksheets.......

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You will still have two K-1s, regardless (and unfortunately).