I have a K-1 form 1065 that says do not use Part III, so is there a way to only enter Part III information from the supplemental form and tie it to Parts I & II?

[AmandaR1]

Where does it say "do not use Part III"?

[lcoogler]

The K-1 from ETP has a bold statement printed over Part III that states "Do Not Use Part III Information -- See 2016 Supplemental K-1 Information Statement".  On the Supplemental K-1 statement it lists the Part III responses 1 thru 20 for four individual entities: ETP, SXL, SUN, and PTXP.  I presume ETP has investments in the other 3 entities and I should report those separately, but how do I do this in TurboTax Premier?  Or am I just not understanding and should use the numbers on the Part III that says don't use these?

[AmandaR1]

No, I'd say you're correct! You should enter them separately because the gain/losses need to be tracked separately. This is less common, but it's how they should be entered; enter it as 4 schedule K-1s and include the entity name.

[lcoogler]

OK, thank you so much for your help with this issue.

[AmandaR1]

You should have no problem entering all sections from your schedule K-1. Part III is the only section that reports the pass through amounts for the year and this should be entered all at once, with the about the partnership/partner info from parts I and II. Based on this info, let me know your follow up questions and more info about why you're trying to enter Part III Partner's share of current year income, deductions, credits and other items, separately. 

[AjayShahnc]

I also received similar 1065 K1 from Energy Transfer LP (ET) , I got suplemental Part III with 3 companies with their corresponding FEIN.

Q1: Do Have to file three K1 individuallyfor each companies with detail of Part III reported in supllemental statement?

Q2:  I have details of part I to file it separeately. How fo I file Part II. Do I fill Part II for ET with the information in 1065 K1 for ET and for remainining 2 companies leave J, K and L Blank?

Thanks in advance.

[DaveF1006]

Since these are companies the partnership does business with, I would advise reporting these all on one K1. You would report these separately if you were claiming a Qualified Business Income deduction but these codes only deal with interest and 179 deductions so it is permissible to report this on the partnership K1. 

[TaxCrazy]

The issue is that Turbotax does not explain or ask if boxes 21 or 22 are checked on the K-1 1065 form. If it did it would be able to advise people as to how to enter part III for each of the activities. 21 and 22 tell you to see the attached SUPPLEMENTAL STATEMENT listing all activities and showing Box 1 thru 20 for each.

My K1 has 3 activities. 2 of them are sub partners. Turbotax does not allow filling out all 3 under the same K-1.

If i fill out 3 separate K-1... Parts I and II pertain to the 3 entities as ONE. 

Do I fill out Part I and Part II on each of the K-1 forms or just one one of them? Again the amounts in Part II apply to all 3 as if they were one and I have no way of knowing how my capital was allocated. 

Thanks for the help!

[JamesG1]

You enter three K-1 entries into TurboTax.  Your K-1 may be structured as follows where box 1 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 Choose Type of Activity, click This K-1 has more than one value in boxes 1, 2 and 3.

At the screen We see you have Section 199A income,

• You will click The income comes from the partnership that generated this K-1 for the main partnership,
• You will click The income comes from another business for the other two partnerships.

[TaxCrazy]

James,

Thank you for the great explanation! I just want to clarify. See item in bold below.

Main K-1   

Part I  - filled out as shown on form

Part II - filled out as shown on form

Part III - filled out as shown on SUPPLEMENTAL STATEMENT.

Sub Activity K-1

Part I  - filled out as shown on form

Part II - filled out as shown on form EXCEPT DO NOT FILL OUT ITEMS J, K AND L pertaining to profit, loss and capital?

Part III - filled out as shown on SUPPLEMENTAL STATEMENT.

Thanks for your help!

[JamesG1]

Part II - filled out as shown on form EXCEPT DO NOT FILL OUT ITEMS J, K AND L pertaining to profit, loss and capital?

Complete items J, K and L for the main partnership.  Do not fill out these items for the sub-activities.

[mkmk]

Hi, Thank you for the very helpful information.

I have the same situation but Part III has no values in any box in main K1 and even in the SUPPLEMENTAL for any of the partnerships. Box1,2 and 3 has 0 in it. What do I do?

just choose box1 for all the forms and type 0?

Thanks

[DaveF1006]

It depends. To clarify, does that K1 have any information in it, including Box 20? 

[TaxCrazy]

Note to Turbotax experts. The K1 section of Turbotax was written by impostor experts. You will cause people a lot of trouble with this mediocre section. Please get your real experts together and fix it or we will stop using your product. 

Ive called and spoken with 3 of your experts so far and all were clueless! All scrambling to chat with other experts in an attempt to bs an answer and get a good rating on the survey. You’re not fooling anyone. You are asking us if there is anything on the K1 in section III line 20? It depends. Your silly software should be systematic and clear on what to do to enter these forms section by section. The software should ask questions like. Does your K1 point to an attached Addendum that lists multiple activities with items listed in boxes 1, 2 and 3 as well as in boxes 4 through 20. At this time the software asks a bunch of junk questions that do not align with the way k1 items are reported on the 1065 format. 

The other major issue is that the software does not explain where you can enter values for boxes 1 2 and 3 if they all have values. You can only pick one. and then it skips straight to box 4. The software should say If your k1 has values in lines 1 2 and 3, you should do this and that but it doesn’t. It’s like trying to perform surgery in the dark. 

Fix it! Im not going to pay 250 bucks again and will rather pay a real CPA to get it right. 

Please pass this on! The level of mediocrity in the k1 sections is embarrassing and I will add that the level of mediocrity and cluelessness in the experts accessible by phone is also an embarrassment! I apologize for my bluntness but I spent countless hours on something that should have been easy to handle with the use of Turbotax. After all that’s what it’s about... Not needing to be CPA to file your taxes. 

I am not saying some of you guys are not experts but a lot of you are far from it. 

Please pass this on to your superiors. Thanks!