DawnC
Expert Alumni

Self employed

Looking at the first token you provided (one K-1 with UPE included), on the Type of Activity screen, you selected Other, which indicates investment (nonbusiness) activity, so TurboTax doesn't generate the Did You Participate question.  When I changed this, I got that necessary question.   Also, you don't have the All Investment is At Risk box checked, so you have Form 6198 included with your Sched E.    You do have meals expense on there which are only being deducted at 50% when it should be 100%.   That should be updated this week.

 

The 2nd token file with the separate K-1 for the UPE has the expenses both deducted and suspended.   So, the way you originally had it was correct, but you need to make those changes.  You may want to delete both K-1s re-enter just the one with the UPE and wait to file until after the meals are updated.   

 

Please see this discussion if this income is truly an 'other' nonbusiness activity.    The OP did what you did, but see Rick19744's responses.    TurboTax does correctly subtract the UPE if you materially participate.  

 

General Partners can reduce SE income by Unreimbursed Partnership Expenses if it is in the Partnership Agreement.  

 

 

 

 

 

 

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