My husband and I each receive a schedule k-1 for an LLC we jointly own and is a Rental Property.
Our tenant included the security deposit on the 1099-MISC as such, Box 1 of the Schedule K-1 has a negative number that offsets the income shown in Box 2.
The K-1 shows the Rental Income (inclusive of the security Deposit) in Box 2 and the Ordinary Loss (Security Deposit) in Box 1.
When I entered the K-1 information for each of us I started with Box 2 as that is the Ordinary Business of the LLC.
I included all the information from Boxes 5, 6a, 14, 17 (which is $0), 19 and 20.
I included all the information on Statement A for the K-1 that has Box 2 amount filled in.
Just for information here, I will share that Box 14 of each k-1 equals the amount in Box 1.
My questions are as follows for each of our k-1’s when adding additional K-1’s for BOX 1:
When I go through the screens for Box 1; there are screens that ask about Capital Account, Liability, etc. I left those blank and only put in the value for Box 1. Is that correct?
Subsequently, for the screen that asks about the other boxes, I left them all blank and for the next screed said that the k-1 does not have a code Z in Box 20. Is that correct?
