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New Member
posted Mar 13, 2025 10:24:23 AM

We have distributed both Income and proceeds from assets in 2024 and reported on 1041. A portion of the non taxable are showing up on the K-1, line 5. How do I fix?

As an example $40,000 from his IRA (taxable) and $40,000 from proceeds of art sales (no gains)... so I was expecting only $40,000 on K-1 line 5 but there is $60,000.

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1 Replies
Expert Alumni
Mar 19, 2025 5:16:04 PM

It's possible the entry for the art sales didn't result in no gain. You can track where the additional income was entered using Forms Mode.

 

  1. Open your return and click the Forms icon in the TurboTax header. 
  2. Form 1041 should be open in the large window. 
  3. Scroll down to Line 5 and right-click the amount.
  4. Choose "Data Source" to see where this amount originated.
  5. Click on the form or amount in the popup window, then repeat the Data Source inquiry until you determine what needs to be corrected.
  6. If you need to confirm the income is reported correctly, click on Schedule K-1 in the forms list and review the results.
  7. When you are finished, click Step-by-Step in the header to return to the main screens.