AnnetteB6
Expert Alumni

Business & farm

After taking a closer look at your diagnostic file, there is not an error in TurboTax that needs to be corrected.  Instead, the issue is with the way the data has been entered into the program.  

 

In order to keep all of the QBI losses from rentals together and associated with the K-1 reporting rental income (loss), you should add all of the amounts together and report them with a single box 20 code Z entry.  

 

That means that you will only have two K-1s in your return (instead of four) - one for the partnership reporting income in box 1 and one for the other partnership reporting income (loss) in box 2.  Doing it this way, all of the 'numbers' stay together and losses are reported against the proper category of income.  

 

By including the -1 as a loss in box 2 of the supplemental K-1s that you entered, you were actually tying the QBI losses together as if they had all been added together in a single entry.  But, to make your return more accurate without the -1 in each of the supplemental K-1s, you can add all the box 20 code Z entries together on the single K-1 showing the loss in box 2. 

 

@alexonski 

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