I have a K-1 form 1065 that says do not use Part III, so is there a way to only enter Part III information from the supplemental form and tie it to Parts I & II?

[DawnC]

The Learn More Link explains the need to treat each activity of the K-1 separately.   

To determine what type of activity your partnership/LLC was involved in, look at boxes 1 through 3 of your Schedule K-1. An amount on:

 - Box 1 indicates business activity
 - Box 2 indicates real estate rental activity
 - Box 3 indicates other rental activity.
 - Other indicates a single activity other than a rental or business activity. This might include something like an investment club.

If your K-1 does not have an amount on these boxes, select Other.

Note: 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.   

If you have an amount in Box 20, it is assumed you have an addendum statement.  Any entry in Box 20 (or Box 17 from an 1120-S K-1) will generate follow-up questions to report the additional reporting information from the statement.     @TaxCrazy

[TaxCrazy]

The learn more link does not at all explain what information should be repeated on subsequent entries of the same K1, each for box 1, 2 and 3. It also is very ambiguous as to what business that generated the K1 means. If I select that box I get a different result than if I don’t. If I don’t, it allows entry for rental income and other activities which is what I did at last because none of the experts could tell me what to do. 

This forum has many people baffled by the same issues.

Do there are 2 issues! 

1) In the case of a LP with addendum listing other companies with their own activities, Turbotax does not explain what should be entered for each one for each section. Parts 1 and 2 pertain to the business that generated the K1 and the overall capital distribution which should not be entered when entering new k1s for the other companies listed. It has zero instruction and it only mentions that new k1 should be entered but not what information to enter.

2) Some businesses have income in boxes 1, 2 and 3 and Turbotax does not explain the hat information from items 1 to 20 should be re entered. Is it just box 2 and leave all other empty? Is it box 3 and leave all othets empty? Or fill out all other boxes as done when filling out the K1 for Line 1 Ordinary income? Who knows? It doesn’t say. 

Please run through the online premier version of Turbotax and see for yourself. It is not bullet proof. I am sure I entered my forms wrong and despite asking for a review from your useless experts who didn’t know what to do, your software assured me all is accurate... How can it possibly know that? Please run through the process yourself before giving bogus advice.