How to enter a k-1 with 3 passthrough entities? Some have rental income and W-2 and some don't. How about box 1-19?

[DaveF1006]

Can you clarify what do you mean you have a K-1 with three passthrough entities?  Usually a k-1 is issued with only by one entity such as a 1065, 11020S, or 1041?

[dywcheng2022]

Box 20 code Z.  It states 3 pass through entities with different rental income, W-2 wage and UBIA.  How to enter this K-1 in TurboTax?

Thanks

[JamesG1 · Accepted solution]

I assume that you entered all the real estate activity on one K-1 entry.  If this is not the case, please clarify.

Learn more at the screen Choose Type of Activity states:

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.

If you entered the total of all of the real estate activities under Box 2 at the screen Choose Type of Activity, enter the total of the net rental real estate income / (loss), W-2 wages and qualified property at the screen We need some information about your 199A income.

• At the screen Enter Box 20 Info, select Z-Section 199A information.  Leave Amount empty.  This tells the software that Section 199A information will need to be entered for the income previously reported.  Click Continue.
• At the screen We see you have Section 199A income, select the appropriate income description.  Click How would I know this? for more information.
• At the screen We need some information about your 199A income, select the appropriate income description and amount from the 199A detail provided with the K-1.  Click Continue.

The information that is needed to complete the screen may be found on a Statement A attached to your K-1 information.

@dywcheng2022 

[dywcheng2022]

Thank you JamesG1!

In summary, I just leave the Z on Box 20 empty and entered everything in the Statement 199A by filling the table that comes later, typing everything as is on the K-1.  Correct?

Appreciated the clarification!

[AliciaP1]

Yes, that is how you need to enter your Statement A Section 199A information!

@dywcheng2022 

[dywcheng2022]

Wait, there is no table like when I enter Box 20, code AH.  This is what I get following the instruction.  Again, there is no place to enter the passthrough entities.  Please advise.

No place to enter passthrough entities. Can I just add up all the loss , w-2 wages and UBIA?

[AliciaP1]

No.  You will enter the Section 199A information here that pertains to the operation of the partnership.  Then you need to go back and enter another K-1 for the same partnership and only mark box 20 code Z.  Then, when you proceed to the We see you have Section 199A income screen, you will mark The income comes from another business and Continue.  You will then be asked for the name and EIN of the pass-through entity that created the income.  You will need to complete additional K-1s like this for each of the pass-through entities.

@dywcheng2022 

[dywcheng2022]

@AliciaP1 

So if I received K-1 for Partnership O with X, Y, and Z passthrough entities.  I will create 4 K-1s in TurboTax under Partnership O.  Fill Box 1-20 for Partnership O on first one and leave Box 20 code Z blank.  If Partnership O does not have any income or loss, leave the screenshot I showed earlier all blank.

On the remaining 3 K-1s, I leave Box 1-19 blank.  For Box 20, I only need to select code Z.  Then, on the one for the passthrough entity X, I fill the Business Name with Partnership X and its EIN.  On the next screen, "We need some information about your 199A income" I fill in the business income (loss), W-2 wages and UBIA under X.  Repeat this for Y and Z.

Nowhere do I need to add the total manually for Code Z in any of the 4 K-1s, correct?

Thank you for the trouble!  I just want to make sure I do not miss any steps.

[AliciaP1 · Accepted solution]

Yes, the steps listed here are correct!

@dywcheng2022 

[dywcheng2022]

@AliciaP1 Thank you so much for the explanation and confirmation!  Best regards.