When passive partnership issued K-3's only have US based income and the tax payers receiving them do not have to file Form 1116 (some may be eligible to claim foreign tax credit on Schedule 3), I do not see any option other than uncheck Box 16 in TurboxTax when entering information for K-1. Otherwise, TurboTax review will always show error.
The best solution in my view is TurboTax fixes this bug by adding one more interview question:
"If your K-1 have only US income/loss and you do not have to file Form 1116 to claim foreign tax credits, please check this box" and then by passing all entries and end K-3 part. This will solve the problem.
If anyone has any better ideas, please advice.
