Solved: Re: When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should o...

spaceman-spiff · ‎April 15, 2020

@AmyC thanks that is helpful to know.

Say I have a K-1 with Box 1 and Box 2 entries.

Two follow up questions:

Should I mark the two different K-1's I enter into TT as an aggregated business? It is really the exact same business, not two separate businesses, so my guess is "no". But then TT must internally aggregate them somehow.
On the K-1 I create with only the Box 2 entry, what do I do about entering the partner's share of profit / liabilities and the capital account? There is a note saying that the Ending Nonrecourse liability is mandatory, so do I have to enter that for both K-1's? Or can I leave everything blank on the Box 2 K-1?

ThomasM125 · ‎April 15, 2020

You have an option to aggregate the businesses, but it is a lot more trouble to complete your tax return if you do, so I would advise against it.

You should only enter the partner share and capital account information on one of the K-1's.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

chasmanian · ‎July 31, 2020

I entered the Box 1 info, as well as the info in all other boxes, except Box 2. When I started on the "second" K-1 in order to enter the Rental Income, I couldn't un-check the boxes that indicate I have info in them (Boxes 13, 15, 18, etc.). As I go through the process, the amounts that I entered from the first K-1 are shown. Do I delete them as I am now on the "second" K-1? Or, leave them??

IdaDunnit · ‎April 3, 2021

If I tell Turbotax that both K-1 reports are for the end of a partnership, the capital gain gets doubled. How do I avoid that?

MarilynG1 · ‎April 5, 2021

@IdaDunnit Your Capital Gains should only be reported on one of your K-1's.

Click this link for more info on Reporting Final K-1's.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

littleplacecalledaspen2 · ‎April 29, 2021

I also have entries in boxes 1 & 2 of my K-1. From what I can tell going through this thread of comments, nobody has explicitly stated the details of which entries should be reported with the box 1 (ordinary business income) K-1 and which entries should be reported with the box 2 (net rental real estate) k-1 . For the first K-1, I entered the amount from box 1 (ordinary business income), and then I went through the rest of the K-1 and entered all of the information from the other boxes that I could. For the second K-1, I entered the amount from box 2 (net rental real estate income), and then I did not add any additional info into the rest of the second k-1, because it has all already been entered into the other K-1, linked to box 1 (ordinary business income). Is this correct?

rodderrs · ‎April 29, 2021

one one k1, report box 2 income/loss AND all rental income, w2 wages and Unadjusted Basis of Assets. These all relate to the rental activity. Include the stuff from the left of the k1 such as partners share, capital acct, loans. Do not duplicate these on the other k1.

On the other k1 take box 1 for ordinary income and all the other boxes not collected for rental activity.

Ignore any entries for depreciation shown on k1 notes.

If box 1 or 2 has a zero, then consider that a non entry and then do not have to create the duplicate k1.

IEnteredAUserNameLastYear · ‎March 3, 2022

"@rodderrs You can enter the k1 box 20 entries on either form. The program has been this way for years and only the programmers know why. The key here is that the information is only entered once between the two forms. It does not matter so much which form other than the box 1 and box 2 must be separate. The program picks up the information and moves it around and makes it all work together."

This seems silly. If turbotax is going to move things around behind the scenes why not let us just enter the form as is and then do the 'moving behind the scenes' instead of making it needlessly complicated.

I've had boxes 1 and 2 filled out in the past few years and didn't have to do it this way.

holoberg · ‎March 23, 2022

Go to Forms to uncheck box entries. When returning to Step-by-Step the box [ ] is empty.

PaulW22 · ‎April 4, 2022

When entering K-1 info a second time for same company because Part III has numbers in more than one box in boxes 1,2,3, I understand I only enter the dollar amount in the box I didn't enter in the first one. Please confirm. Also, On the first one ( i.e. box1 & 3) do I only enter 1 box or do I enter both boxes so as to get the statement that I have to create more than one K-1 for one company? Also, on the second K-1, it is recommended that I only enter one of box 1,2, or 3, but not any more boxes4-21. Do I also leave Part II blank in items J-N?

JamesG1 · ‎April 5, 2022

At the screen Choose Type of Activity, click the hyperlink Learn more. The note will 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 3 income. Only click on box 3 and the statement "This K-1...".

The other boxes of the K-1 may refer to either box 1 income, box 3 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 3 or both boxes of income.

The second k-1 entry does not include the Part II items J-N.

@PaulW22

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

holoberg · ‎April 5, 2022

Only one of the Box 1, 2 and 3 should contain Box 4 - 20 info.

PaulW22 · ‎April 5, 2022

Thank you much. Since your answer was so organized and concise I dare to ask another of you. The K-3 will not arrive until latest August. What do I do? I have heard 1) file without it 2) file an extension on taxes until it comes 3) the K-3 info will be put on 2022 taxes. Any help is appreciated.

JulieS · ‎April 5, 2022

I can only recommend filing an extension and waiting for the form to be available for filing.

The IRS has offered penalty relief for this year, but it has a lot of details in it, so it is not a pass to simply not file your K3.

Click here to learn more about the penalty relief.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

holoberg · ‎April 5, 2022

I filed without waiting for a K-3.

You may not have to file an extension later.

Just wait and see.

Expert does your taxes

Do it yourself

Resources

Support

Expert does your taxes

Do it yourself

Resources

Support

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

Get more help

Do you have a TurboTax Online account?

Do you have an Intuit account?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 &amp; 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 &amp; 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 &amp; 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 &amp; 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 &amp; 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 &amp; 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 &amp; 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 &amp; 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 &amp; 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 &amp; 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 &amp; 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 &amp; 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 &amp; 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 &amp; 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 &amp; 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

Get more help

Related Content

Thank you for helping us improve the TurboTax Community!

Sign in to Turbotax

File your taxes, your way

Access additional help, including our tax experts

Post your question

Connect with an expert

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?

When a single schedule K-1 shows multiple sources of income (in Boxes 1, 2 & 3), should ordinary gain in the Schedule K-1 be entered more than once into Turbotax?