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Level 1
posted Apr 20, 2023 10:02:06 PM

Schedule K-1 (form 1065) for LLC

Hello, I appreciate all your help with my questions here. I am using TurboTax Home & Business edition. I have received 3 separate Schedule K-1 (Form 1065) for the 3 LLC's. I've entered all the data from those Schedule K-1's along with other additional non-reimbursed expenses to 3 separate K-1 under the Business Investment and Estate/Trust Income section of Turbotax. Each and all LLC shown a net income loss. My first question is, do I still have to enter any of these data somewhere else? Second question, how do I know TurboTax has taken all the data and processed as appropriate? It appears TurboTax shows no data ($0) under the 2022 column and shows no difference to my overall reductions for the net loss income I incurred under these 3 LLC's. Thank you!

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1 Best answer
Expert Alumni
Jan 21, 2024 6:47:17 AM

If you have entered all the information from Schedule K-1 under the Investment Income section of TurboTax, you do not need to enter this again anywhere else on your return.

 

Since you are working in the desktop version of TurboTax, you can review the forms that are created as you enter Schedule K-1. See this article for how to use Forms Mode (Windows). Following your entries from one form to the other will allow you to see how the investment income affects the income on your return.

 

  • Sch K-1 Wks (Schedule K-1 Worksheet) displays the information you entered for each K-1 and shows where those entries are displayed on other forms.
  • Sch E, Pg 2 (Schedule E) summarizes the information from all Sch K-1s. Taxable income/loss is shown in Part II. There should be a separate "UPE" line that shows your unreimbursed partner expenses.
  • Form 1040 Schedule 1 Line 5 displays the Total income or loss from Schedule E.
  • Form 1040 Line 10 displays all income from Sch 1.

If anything is missing from these forms, return to the K-1 entry screens and review your entries.

 

2 Replies
Expert Alumni
Jan 21, 2024 6:47:17 AM

If you have entered all the information from Schedule K-1 under the Investment Income section of TurboTax, you do not need to enter this again anywhere else on your return.

 

Since you are working in the desktop version of TurboTax, you can review the forms that are created as you enter Schedule K-1. See this article for how to use Forms Mode (Windows). Following your entries from one form to the other will allow you to see how the investment income affects the income on your return.

 

  • Sch K-1 Wks (Schedule K-1 Worksheet) displays the information you entered for each K-1 and shows where those entries are displayed on other forms.
  • Sch E, Pg 2 (Schedule E) summarizes the information from all Sch K-1s. Taxable income/loss is shown in Part II. There should be a separate "UPE" line that shows your unreimbursed partner expenses.
  • Form 1040 Schedule 1 Line 5 displays the Total income or loss from Schedule E.
  • Form 1040 Line 10 displays all income from Sch 1.

If anything is missing from these forms, return to the K-1 entry screens and review your entries.

 

Level 13
Jan 21, 2024 4:47:08 PM

A few comments:

  • You don't mention whether your time in the LLC's is active or passive.
  • How the K-1 items are reported on your personal tax return will depend on what box is marked on your respective K-1.  If box G reflects "limited partner of other LLC member", then TT is considering you a passive investor and your losses are most likely being reflected on form 8582.
  • If your losses are reported on form 8582, then your losses will be suspended and carried over to next year and will only be used when the LLC's generate income.
  • In addition to reviewing for form 8582, TT will need to know if you are "at-risk" for the losses.  Make sure you answered this question appropriately.  You should know the answer to this if you are tracking your tax basis.  If your tax basis is positive, then you are "at-risk".