How do I create a separate Schedule K-1 (Form 1041) entry for a PTP? TurboTax wants me to create this and "check the PTP box" which I cannot find.

[lsdmhd71187]

My Schedule K-1 (Form 2041) Box 14, Code I lists both 199A REIT dividends, which TurboTax is allowing, but then also has PTP income. TurboTax says "Create another K-1 for the PTP. Be sure to check the PTP box on the K-1". Where do I create this? I'm not seeing a PTP box when I try.

[lsdmhd71187]

Sorry, I meant Form 1041 (not Form 2041)

[DavidS127 · Accepted solution]

To find the PTP box for the second K-1 you must enter, enter the code I on the box 14 screen (you don't have to enter an amount on that screen).  After a couple of screens about passive loss carryovers and QBI carryovers, you'll get to the "We see you have Section 199A income" screen.  When you click the "Yes, some or all of this income is from a business" button, you'll see a checkbox "open up" to indicate it is for a PTP.

Keep in mind that you will need to "split" the amounts on the K-1 you actually received between the two different K-1s you enter into TurboTax.  So, the total of each box for both K-1s you enter should equal the box amount shown on the actual K-1.  This is also true for the Section 199A Statement/STMT for Box 14 that came with your K-1--it must be split between the amount related to the Trust and the amount related to the PTP pass-through entity. 

And, make sure you continue on to the "We need some more information about your 199A income or loss" screen to enter those Section 199A Statement/STMT amounts so that TurboTax can properly calculate your QBI deduction.

[Carl]

YOu need to physically enter this "AS IF" you received two physically separate K-1's. One reporting the REIT income, and the other, the PTP income.

[lsdmhd71187]

Thank you! I'm still uncertain because when I create the second K-1, specifically to report the PTP, and get to the point where I check the box for PTP, it still responds with the same language that I must go back and create a new K-1 for the PTP. It's very confusing because it feels like I'm stuck in a loop that never lets me move ahead with a PTP entry.

However, I decided to ignore this message, finally, and just click to go ahead.

It seemed to work, but I'm having further trouble. When I have TurboTax review my federal return it comes back with many questions about my K-1 entries, including the PTP. My K-1 statement does not have the information TurboTax wants. Should I go back to my fiduciary entity or just leave things empty on TurboTax?