I did not dispose of any of my partnership last year but I get the error "Sch K-1 Partnership additional Info 2 Disposition of interest question 1 must be answered."
The next error is Part II Line 2 must be entered
Next error Part II line 3 must be entered
Since I did not dispose of any interest in the partnership what should I do?
If your K-1, has the box in the top right checked that indicates Final year return then your partnership interest is considered 'sold or disposed.'
If that's not the case, then it sounds like something may have been entered incorrectly and because of all the situations accounted for on the K-1, it can be difficult to change some answers. Therefore, it can be best to re-enter your K-1 and delete the problematic entry. To do so:
If that does not solve your issue, than there could be items reported in Part III of your K-1 that actually indicate that there was a disposal. In this case, you might have more information in an attached statement or may need to check with the business that issued you the K-1. However, often re-entering a form carefully, can fix issues.
Also, do you have amounts in more than one box for box 1, 2 & 3 on your schedule K-1? If so, make sure you are entering your K-1 separately for each box.
I have the same issue. I only have amounts entered in box 1 of all of my K-1's yet they all get this error. AFAICT, there is no information in Part III that indicates disposition of these properties either.
Nevermind. I mis-understood the term Final K-1 to mean the final one for the tax year (sometimes we get multiple superceding K-1s.)
If your K-1, has the box in the top right checked that indicates Final year return then your partnership interest is considered 'sold or disposed.'
If that's not the case, then it sounds like something may have been entered incorrectly and because of all the situations accounted for on the K-1, it can be difficult to change some answers. Therefore, it can be best to re-enter your K-1 and delete the problematic entry. To do so:
If that does not solve your issue, than there could be items reported in Part III of your K-1 that actually indicate that there was a disposal. In this case, you might have more information in an attached statement or may need to check with the business that issued you the K-1. However, often re-entering a form carefully, can fix issues.
But where in TT do i indicate that this is the final K-1?
I have the same issue as the original poster. In my case the box is checked for a Final K-1 but the interest was not sold or disposed of but rather there was a Corporate Reorganization. I checked "Partnership was discontinued during 2019" but the errors mentioned above appear and the interest was not disposed of I cannot e-file and am in a quandary as to how to proceed other than to mail my return which is a cumbersome endeavor. I received Class A common stock in exchange for the common units in the partnership which is to qualify as a tax deferred exchange. Suggestions?
I got the same error - The reason was if you import last year tax you must go back and click on the PERSON tab >>> PERSONAL INCOME >>> scroll down to BUSINESS INVESTMENT AND ESTATE/TRUST INCOME and click on update SCHEDULE K-1. Update your Form 1120S >>> EDIT >>> Is this information correct? click on NO - Even it is, keep click on continue until you get to the box "Enter percentage of ownership from box G" enter the correct info and continue. Next box for some reason default by TurboTax the first box is checked!!!! "This S corporation ended 2021" this is why you got the smart check error. If you didn't sell your business check "None of these apply". This should fixed the error.