Enter the Federal K-1 in the Income & Expenses Tab in the Federal section of TurboTax. You will need to choose all the lines that are affected (for both state and Federal) in the Federal Section.
If your K1 reports Business (box 1) as well as Rental and/or Other Income, Turbo Tax recommends that you enter each activity as a separate K-1 in order to properly track any carryovers:
Since your K-1 reports amounts in more than one of boxes 1, 2, or 3, the partnership/LLC is involved in more than one type of activity. You should treat each activity separately in TurboTax.
Enter the business activity amount, box 1, on one K-1
Enter real estate rental activity amount, box 2, on another K-1
Enter other rental activity amount, box 3, on a third K-1.
This will allow TurboTax to properly track your loss carryovers. This is especially important if you ever sell your interest. For all amounts reported following Box 3, look for a statement attached to your K-1 to help you allocate these amounts to the proper activity.
When you go to your State Return go to the Partnership Section and choose Edit,( the same line items will be available in the State Section as you chose in the Federal Section.)
In the State Follow the on-screen prompts until you get to the screen that says " K-1 Adjustments". This screen will allow you to enter amounts for the State K-1.
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