topic Procedure to report K-1 Form 1065 in Business & farm

Procedure to report K-1 Form 1065

hscarfo — Tue, 04 Jun 2019 20:02:04 GMT

Form 1065 K-1 has small amounts in both box 1 & 3. Turbo Tax states two K-1's should be recorded when this occurs. This doubles the tax liability on a single reported distribution in line 19 & line 20. This is an amended return for a late arriving tax document. This doesn't seem to be a correct treatment. Is reporting 2 K-1's for a single distribution a correct procedure? "

You need to have two separate K-1 inputs as recommended b...

Rick19744 — Tue, 04 Jun 2019 20:02:05 GMT

You need to have two separate K-1 inputs as recommended by TT. However, one input you will enter all K-1 items except box 3. The second K-1 input will be ONLY box 3.

There should not be any doubling of tax if handled as noted above. The reason for separating the K-1 information like this is so the rental real estate can be handled appropriately.