I am invested in the RE syndication fund. My K1 includes Section 199A information with descriptions of 10 properties in 5 different states. All properties show "Rental Income" and "Unadjusted Basis of Assets". There is also a Passthrough Property listed with a separate EIN.
How should I enter all of these 10 properties? When I go through the question screen for "information about your 199A income", I am only prompted to provide data on 1 property (xxx has business income(loss) and xxx has UBIA of qualified property).
Also, for the additional passthrough property listed with a separate EIN, do I just input a new K1?
You input a separate K-1 entry for the separate EIN. I am unsure about the ten properties. Are they all reported under individual EIN's or are they part of the main partnership?
Your K-1 may be structured as follows where box 1 or box 2 reports the total of the three entities but attachments break out the income by entity.
K-1 Main partnership A B
Box 1 1,000 500 200 300
During the first part of the K-1 entry, all the separate K-1s use the name, address, and EIN of the main partnership shown on the K-1 you actually received. Enter each additional Schedule K-1 just like the first. Capital information is only reported on the main partnership.
At the screen We see you have Section 199A income,
The separate section 199-A statement that you received for box 20 code Z should already split the Section 199-A amounts between the entities, so you enter the Section 199-A amounts for each entity on the K-1 you have created for that entity.
Note that when you enter each K-1, you will encounter the question Is the business that generated the Section 199-A income a separate business owned by the partnership? screen. TurboTax is asking if the Section 199-A income was passed through to the partnership sending you the K-1 by another partnership, S-Corp, or trust; versus being generated by the business operations of the partnership that sent you the K-1. So, on one of the K-1s you enter you will answer that it is from the main partnership, and on the others you will enter that it is from a pass through entity. TurboTax will ask for the name and EIN of each pass through entity.
To clarify, only Box 2 (net rental real estate income) is filled out out of Box 1-3. The 10 properties across 5 states are broken out on the next page (Section 199A information, Box 20, Code Z) under the main fund EIN. The Passthrough property (property #11) has another EIN listed with rental income and unadjusted basis of assets shown.
If I add all the "rental income (loss)" for all 11 properties, I get the number listed in Box 2.
Are you able to clarify your response with the above updated information? I'm still not clear how to enter in all the data for the 10 individual properties. Thanks
It sounds like you have 199-A information for all eleven properties?
Report ten K-1 entries under 'main partnership'. Report one K-1 entry for the other EIN as 'income comes from another business'.
Total rental income reported equals box 2 of the original K-1.
>>Report ten K-1 entries under 'main partnership'.
This is the part I'm not clear about. How do I enter in the 10 individual property details? I'm assuming I should enter the state location somewhere so it can flow into a separate state return?
If you have an obligation to report income to an individual state (likely as a non-resident), you declare that income in the individual state tax return. There will be a reference to K-1 income amongst the state interview questions.