Hello TT team,
For the subject details, I need your help to understand what calculation do I need to do to fill out Form 1065.
I have two separate K-1 forms. The first is for business Income (box 1), and the second is for Rental Income (box 2). Both incomes are negative numbers (loss). For both K-1 forms, Code Z STMT is entered in box 20.
For the first K-1, Section 199A information includes only 3-entries, i.e. Ordinary Income (loss), W-2 Wages, and Unadjusted Basis of Assets.
For the second K-1, Section 199A information includes rental income information for 5 different locations. Each dollar value is different, but for example, I am entering it in a random format below:
Rent - Location A: Rental Income (Loss) $100, Unadjusted Basis of Assets $1000
Rent - Location B: Rental Income (Loss) $200, Unadjusted Basis of Assets $2000
Rent - Location C: Rental Income (Loss) $300, Unadjusted Basis of Assets $3000
Rent - Location D: Rental Income (Loss) $400, Unadjusted Basis of Assets $4000
Rent - Location E: Rental Income (Loss) $500, Unadjusted Basis of Assets $5000
Rent - Unallocated Expenses: Rental Income (loss) $-2500
This is my first time becoming a business (Limited, Domestic, Individual) partner or first-time K-1 filer. Following are the questions:
1. For the second rental K-1 income, do I need to enter all five individual entries, or do I need to sum up all values for each option: Rental Income (loss) and UGA values?
2. Where do I need to enter Unallocated Expenses Rental Income (loss)?
3. How do I calculate Qualitifed Bussiness Income (QBI) deduction, or is there an interview process that I will have to follow to calculate QBI?
4. There are two sections in K-1. A) IRC SEC. 163(J) Adjusted Taxable Income Calculation, and B) IRC SEC. 163(J) Business Interest Expense Limitation. Do I need to enter these entries anywhere?
I am using TT Delux Desktop version which has interview questions for Schedule K-1 (Form 1065).
Let me know if you have any questions. I will greatly appreciate your response.
@DavidS127
@KathrynG3
I will really appreciate it if you can answer anyone question or all questions. Thanks!
