I received a K-1 with both Part III line 1 ordinary business loss and part III line 2 rental real estate loss both actively and materially participated in. To note the K-1 was received from TurboTax Business 2020 and was accepted for e-filing. When filling out the worksheet it "suggests" using 2 separate K-1 for ordinary business and rental real estate activities because "easier to track passive losses. I do not want to do this as it is a single partnership with a single capital account and I received a single K-1. It won't let me e-file because it says the K-1 is incorrect even though the K-1 itself came from TurboTax Business. Is there a way to import the TurboTax Business K-1 so it will accept it; or override the K-1 worksheet so I can e-file. It makes no sense that TurboTax individual does not accept a K-1 generated and accepted by TurboTax Business.
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@squirrel500 wrote:
.....or override the K-1 worksheet so I can e-file. It makes no sense that TurboTax individual does not accept a K-1 generated and accepted by TurboTax Business.
There is no known workaround for the scenario you described. In fact, the same issue exists even with K-1s not generated by TurboTax Business.
You can certainly do an override, but that will prevent you from e-filing.
Not directed to you but as a general statement. So TurboTax Business says the K-1 with both ordinary business and rental real estate activities on a single K-1 is acceptable and accepted for e-file by both TurboTax and IRS and generates it as such; but TurboTax Deluxe says that is not acceptable for e-file. So TurboTax does not accept a TurboTax form; makes perfect sense.
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