topic Depreciation Allocation Federal K-1 versus Pennsylvania RK-1 in State tax filing

Depreciation Allocation Federal K-1 versus Pennsylvania RK-1

Jayson2 — Mon, 23 Feb 2026 12:36:06 GMT

Hello,

I am an executor filing a "final" return for a decedent's estate. All distributions have been made, which includes taxable income from a rental property. All depreciation has been distributed to the beneficiaries and is properly listed in box 9 of Federal K-1. TurboTax automatically reduced the Estate's portion of depreciation to zero. No issues so far.

The problem? The Pennsylvania RK-1 transfers rental income values from the Estate (1041) return. How do I get the depreciation deducted off the value in box 6 of the RK-1?

Re: Depreciation Allocation Federal K-1 versus Pennsylvania RK-1

AbrahamT — Thu, 16 Feb 2023 20:35:53 GMT

I just did it on my end and it went through. See

but not here Rk-1 line 6

It's off on my end seamlessly.

Re: Depreciation Allocation Federal K-1 versus Pennsylvania RK-1

Jayson2 — Fri, 17 Feb 2023 03:15:15 GMT

Apologies, I wasn't perfectly clear. I want the depreciation to be taken into account on Pennsylvania RK-1 so it can be deducted. Otherwise, the beneficiary is overpaying for rental income. In your example, suppose the rental income (paid by tenants) was $2000. Deducting $1100 depreciation, I believe box 6 of RK-1 should show $900. In my hypothetical case, box 6 shows $2000. This means the beneficiary is paying taxes on the depreciation (3.07% on $1100) when he shouldn't be.