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.
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.
"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.
@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 ?
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.