If more than one box of the boxes 1, 2 and 3 of Part III (Partner's Share of Current Year Income, Deductions, Credits and Other Income) of a single Schedule K-1 have nonzero values in them, then Turbotax says you need to input data into Turbotax as if you have a separate K-1 for each box with a nonzero value. So, for example, if boxes 1 and 2 have nonzero values in them, then you have to input data into Turbotax as if you have two separate schedule K-1s.
The K-1 that I received is for a Publicly Traded Partnership whose main business is not in Real Estate. I have thousands of dollars of loss in Box 1 (Ordinary Business Income), but less than 20 dollars income in Box 2 (Net Real Estate Income). So I inputted the data into Turbotax as if I have two separate K-1s. But this essentially resulted in a doubling of the Ordinary Gain on Line 14 of Form 1040 (and Line 10 of Form 4797) compared to the Ordinary Gain that is shown on the K-1 I have. This seems like it must be incorrect.
But given the fact that Turbotax says you have to enter data as if you have a separate K-1 for each box with a nonzero value, I'm not sure what to do. Should I be inputting less data into the second K-1 section of Turbotax?
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When entering the K-1 information, you do need to set up two separate K-1's for the input.
However, you don't enter the information twice.
On one K-1 input, you would enter all the information on the K-1 EXCEPT box 2.
On the second K-1 input, you would enter ONLY the box 2 information.
When entering the K-1 information, you do need to set up two separate K-1's for the input.
However, you don't enter the information twice.
On one K-1 input, you would enter all the information on the K-1 EXCEPT box 2.
On the second K-1 input, you would enter ONLY the box 2 information.
I understand that I have to input only once each items of the boxes reported on the K-1. How about the capital question TURBOTAX asks you whenever you start a "new" K-1, do I only input begining and end capital once and then for the following "new" K-1 just input info on the relevant box without entrying or just using 0s for Capital?
Thanks a lot,
Millie
if have entries in box 1 and box 2, TT suggests creating two entries, where one version is just Box 2 and 13, and the other is Box 1 and all other boxes. This leaves unexplained what to do with entries in box 20z where one of the items is often rental income. (note that rental income goes in box 2 also). So it seems illogical to have a separate version of the k1 in TT for Box 2 rental income and then have box 20 reported on the OTHER version of the k1 in TT. Would seem more logical to instruct one version of k1 entries for Box 2 and Box 20. THIS WHOLE COMPLICATION IS CREATED BECAUSE TT CANNOT HANDLE A k1 that has entries in box 1 and box 2. Can't TT just fix that bug?
@rodderrs You can enter the k1 box 20 entries on either form. The program has been this way for years and only the programmers know why. The key here is that the information is only entered once between the two forms. It does not matter so much which form other than the box 1 and box 2 must be separate. The program picks up the information and moves it around and makes it all work together.
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