I have two separate schedules k-1 1065 / K-3.
One of them has values on k-3 line 54 (deductions) on columns c (passive) and d (general) even though it only reports income (line 24) on column d (general). When entering the data, TT asked to use two different forms given the deductions on two categories.
When reviewing the return, TT complains about the value of the passive income deduction, saying that "passive category (line M) is entered but no source of income for passive category has been entered (line M). Enter the income on line M or remove the deduction"
First, the message makes not much sense, maybe half of the "line M"s are supposed to be line G (aka income)?. That said, I see no way of making it happy... either with two separate schedules k1/k3 (so that the categories are in different forms) or having both deductions on a single k1/k3. By the way, the K-3 reports net income loss for both categories on line 55 so clearly TT understands that deductions can be greater than income, as there is no complaint about it
As I said, I have a K1/k3 from a different company, which has passive income (and deductions), so even if this other company reports no foreign source income, the deduction would be useful after combining all forms (I think)
Do I really have to forget about the deduction and enter 0 even though the company is reporting it to me?
