Do I need to fill out a separate k-1 to report "net rental income or loss" as reported on a k-1 ?

[Periwinkle65]

I imported a k-1 form for Williams Partners, L.P. TT . It includes Net Rental Income (loss) on line 2 of $8. TT marks this as an error and indicates that this needs to be reported on a separate k-1. Do I simply label this 2nd k-1 as Williams Partners, L.P. and transfer the amount to line 2 there, leaving the other lines blank? The amount is only $8. and I have no other real estate investments. 

[Periwinkle65]

Thanks for such a quick and detailed response to my query !

[JulieCo · Accepted solution]

Yes, if you have amounts on more than one line of boxes 1, 2 or 3 of your K-1, then TurboTax needs you to enter the K-1 form for each business activity.  And, yes, in your situation for the 2nd K-1, you would just fill in box 2 and leave all the others blank.

Here are the instructions, plus see a sample screenshot below:

Type of Activity

To determine what type of activity your partnership/LLC/Scorp was involved in, look at boxes 1 through 3 of your Schedule K-1. An amount on:

 - Box 1 indicates business activity

 - Box 2 indicates real estate rental activity

 - Box 3 indicates other rental activity.

 - Other indicates a single activity other than a rental or business activity. This might include something like an investment club.

If your K-1 does not have an amount on these boxes, select Other.

Note: If your K-1 shows more than one type of activity, treat each one separately. Enter all business items on one K-1, all real estate rental items on another K-1, and all other rental items on a third K-1.