I have received a federal K-1 and PA (state) PK-1 for the same partnership. Net Rental Real Estate Income was reported on the K-l generating a Tax when entered in Turbo Tax. However the RK-1 (state) doesn't not have this listed any where in Section II for Income. and actually indicates a negative amount.
Why would there be different amounts on a Federal K-1 vs a State of PA RK-1? Is this possible or is it an error?
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Yes - It is possible to have different amounts on the federal K-1 and PA RK-1. Partnerships and S corporations use PA Schedule RK-1 to report income and losses by class of income to each of its resident owners.
A PA Schedule RK-1 is prepared for each individual partner or shareholder showing the share of income (losses) by class and other items required to be reported.
Thanks.
Is this a red flag to the state that there is different income reported compared to the federal K-1? Turbo tax asked me for a phone number for the state to call me, which concerned me.
If the tax is income at the federal level, why wouldn't it be the same for the state?
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