I have capital gain reported on a K-1 from sale of property. A portion is passive and a portion is non-passive. Where do I enter the portions?

[AmyC]

Please enter the information just the way it is on the form. The program will do the rest. Where do I enter a K-1 that I received?

[fredb79]

I appreciate the response, but I don't think entering the info from the K-1 alone will do it.  My K-1 only reports a total number for section 1231 gain (in box 10).  The proportion of the gain that is non-passive is provided in a footnote so there is no place to enter it in Turbotax.  I have my doubts that Turbotax can handle this situation.  The program seems to treat all the gain as non-passive so it is not computing net investment interest tax (NIIT).  The passive part of the gain will be subject to the NIIT, and I am pretty sure I will owe some NIIT, but the program is not including the form 8960 to calculate the NIIT.  I guess will have to get a CPA this year.  

[TerryA]

When a K-1 has more than one type of activity, it must must be split up into multiple K-1s for input into TT: One K-1 becomes the "passive" one with all the other values into it, since the footnote says only a portion of the 1231 is non-passive, everything else is probably passive. The passive portion of the 1231 gain is entered here.

The second K-1 (same K-1 entity name, etc.) reports that 1231 non-passive gain portion. Be sure to report that you materially participated so the program can handle it properly as non-passive.

[fredb79]

Thanks for the reply I think this will work.  I have done something similar in the past because my K-1 used to report income in both Box 1 and 2, but I did not think of using this approach to split up passive and non-passive incomes. 

[Anonymous]

there is another way other than 2 k-1's.  the nonpassive goes on lines 8 or 9

the passive goes on line 11 type i - other ncome and then you need  to click the quick zoom link

and enter the amount on line 3 or 4

another suggestion. TT won't accept amounts on lines 1 and 2,  however if both are passive you can combine amounts and enter on line 1 

i have done as above for multiple years and have never heard from irs about this. 

[fredb79]

Thanks for alternate suggestion.