How to fill Schedule K-1 with ordinary income, rental income, and foreign transactions?

[rowe]

I have a Schedule K-1 with the following:

Part III, Box 1: ordinary business income (loss)

Part III, Box 3: other net rental income (loss)

Part III, Box 16: A, B, E, J

I followed advice and created 3 K-1s, one for each of the sections I described above. In the K-1 for Box 1, I included all other information.

TurboTax keeps complaining that "Sch K-1 Partnership Additional Info 1: Fgn Tax Code J Ln 3 col 3 are listed but no foreign source income at individual level has been listed on the K-1 Additional Information worksheet line 1."

It seems that it's not picking up Box E Code E, which is described as "General Category - Foreign gross income". Initially I tried just one K-1. Either way, the foreign gross income is not picked up, which is preventing me from e-filing.

What is the solution?

[john-ct · Accepted solution]

I usually use 2 copies, not 3 and put the box 16 (and other box info) onto whichever it is most associated with.  See if that works.  If it is for a publicly-traded partnership: I've stopped entering anything under foreign taxes, because it's always a problem..  It's never affected anything else on the return.  I think "at individual level"  is the key to the problem. 

[rowe]

Thanks for your help, that unstuck TurboTax. I guess we'll see what happens after that 🙂

[john-ct]

Glad to help.  I've found that except for the income (loss), return of capital, dividends, etc., nothing in the other boxes has any affect on my tax return.

[dianastan22]

John,

Here is the problem I am having.  It sounds similar.  Any tips on how to fix it?

Sch K-1 Partnership Additional Info 1: Fgn Tax Code I Ln 2 col 3 is listed but no foreign source income at individual level has been listed on the K-1 Additional Information worksheet line 1.

[nexchap]

@dianastan22: Have you gone far enough in the return to complete the "Foreign Taxes" section (in Deductions and Credits)?  That usually cleans up the most common errors.