The K-1 we received has a loss of $42,397 in Box 1. In Box 2 (Net Rental Real Estate Income) the amount is $4,130. TurboTax requires me to make two separate K-1 entries for this same K-1 form. When filling out the Form 6198, in order to take a larger portion of the $42k loss of Box 1, can I add the $4,130 to Line 2C , with the Description of From Rental K-1? There is also Interest Income of $3,942 in Box 4 that appears on the 6198 line 3. There was also a non-deductible expense of $593 that is appearing on line 4. The Adjusted Basis of the K-1 partner is $21,051.
My Smart Worksheet Shows
A Line 1 Disallowed Loss $23,644 Allowed Loss -18,753
F Line 4 Disallowed Loss -$331 Allowed Loss --262
H Income 3,942
I Deductible Loss line 21 -15,073
Am I handling the Rental K-1 income correctly on the 6198?
