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?
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.
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.
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.
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.