Reporting K-1 data in 1040

[aysoref]

Received a 1065 K-1 with information / amounts in boxes L, 1, 2, 6a, 6b and 20.

Per TT help, on the 1040 side there should be two separate K-1s. First one for the RE part, second one for the ordinary business income (loss).

Looking for guidance where to include the amounts from each box: L, 1, 2, 6a, 6b, and 20: first 1040-K1 or second 1040-K1.

[JamesG1]

Schedule K-1 (1065) entry should be available February 21.

Hopefully, the preparer of the K-1 has provided an attachment outlining the breakdown of incomes, expenses and attributes that are listed on the K-1.  The original K-1 and the attachment provided by the preparer of the K-1 may look like this.

Original K-1                                                         Box 1 only                                                           Box 2 only

Box 1     $1,000                   =                             $1,000

Box 2     $500                      =                                                                                                            $500

Box 5     $100                      =                             $75                                                                         $25

Box 6a   $200                      =                             $150                                                                       $50

Box 6b   $100                      =                             $75                                                                         $25

W-2 wages $50,000            =                             $25,000                                                                 $25,000

UBIA $100,000                    =                             $50,000                                                                 $50,000

The partnership should provide section 199A information to compute the qualifying business income deduction for the entity as well as the individual box 1 and box 2 incomes.

At the screen Choose Type of Activity, click the hyperlink Learn more. The note may say:  

If your K-1 shows more than one type of activity, treat each one separately. Enter all business items on one K-1, all real estate rental items on another K-1, and all other rental items on a third K-1.

So there will be one K-1 entry for box 1 income.  Only click on box 1 and the statement "This K-1...".

There will be a second K-1 entry for box 2 income.  Only click on box 2 and the statement "This K-1...".

The other boxes of the K-1 may refer to either box 1 income, box 2 income or a combination.  The preparer of the K-1 may have included attachments or detail which explain how those items break down.  

The preparer of the K-1 may have included qualified business income deduction information in box 20 that refers to box 1, box 2 or both boxes of income.

[sjlocke]

"Schedule K-1 (1065) entry should be available February 21."

It was supposed to be available today.  Come on TT, this isn't rocket science.

[aysoref]

@JamesG1 The K-1 PDF form generated by TT Business does not seem to clearly identify which amounts go to the first or second K-1 (1065) on the 1040 side.

While it is clear box 1 goes to the first K-1 (1065) and box 2 goes to the second K-1 (1065), where do the other amounts go? Specifically boxes L, 6a, 6b, and 20.

If the PDF generated by TT Business does indeed provide that info, where is it visible ?

[JamesG1]

Sorry, I did not mean to imply that such a report was generated by the tax software.

I have always presumed that such reports were prepared independent of the tax software, knowing the needs of the tax return preparer and the IRS requirements. 

I would see them regularly when I worked in the tax offices in the spring.

Short of having such a report, you will have to assign the items to box 1 income, box 2 income, or allocated between the two.

@aysoref 

[kodiak1120]

"Schedule K-1 (1065) entry should be available February 21."  

According to who?  Why isn't it available now?  So annoyed with TT.  I think I'm finally jumping ship this year and going with another software.  TT continues to get worse year after year.