Hi, I have a share in an investment property in NC and not sure how to enter this properly from my K-1

[rsivordog]

I'm confused as to how to enter this for NC state income tax returns

[KarenM90]

You need to enter the K-1 exactly as it appears on your actual K-1 on your Federal Return.

If the investment property is in North Carolina, you may have a North Carolina K-1 as well as a Federal K-1 which will provide you with information on any differences in Reporting.

As you go through the North Carolina Return, you will be asked to allocate your K-1 income, as necessary.

It is generally recommended to prepare your Non-Resident or Part-Year Resident Return prior to preparing your Resident State Tax Return.

[rsivordog]

Thanks, where I'm confused is that I entered the Federal K-1, but on my K1 I have a separate page for NC, however I don't see anywhere on the Federal K1 to enter the specific stuff for NC, and in the State return for NC, not sure what type of income to add. I also have Nonresidents share of net tax paid by the manager of the partnership to enter somewhere on the Federal K1 and not sure where that gets listed. 

[ThomasM125]

You may not need to add any information regarding the K-1 income on your NC tax return, accept to assign income to that state.

Just pay attention to the questions in North Carolina regarding income, deductions or credits that may apply to your partnership income. The income entered on your federal return from the K-1 entry will also appear on your state return. There may or may not need to be adjustments made to the income to have it be properly reflected on your state return.

The income reported on the K-1 form would all be allocated to North Carolina based on where the property is located, I would assume.

If the property taxes are not listed on the K-1 schedule, then you can indicate that you paid them and was not reimbursed by the partnership, you will see an option for that when you work through the K-1 entry. The screen will say "Describe the Partnership" and have an option that says "I am required to pay supplemental business expenses on behalf of the partnership/LLC for which I am not reimbursed", as follows:

 

[tgtheisen]

I have the same situation for my 2020 return...nonresident share of state tax on line7 of my NC K-1.  Were you able to determine where to enter this last year?

Thanks

Tom

[KathrynG3]

Try entering the estimated taxes paid in the state area.

Look for the section under Credits and Taxes. It will be under Other Credits: Credit for Taxes Paid to Other States  in the case of Wisconsin. But, should be in a similar location for your state. 

[tgtheisen]

Kathryn, unfortunately NC only has one option under Other Credits...Other State Tax Credit.  It's the same for both their online and desktop versions.  Thanks for your reply.

Tom

[rsivordog]

Hi, I did eventually figure this out, but not sure I 100% remember how I did it! From looking at my returns last year, in the Wages & Income section, I put the Estimated Tax Payments there it looks like under State estimated taxes. Hope this helps!

[tgtheisen]

I contacted TT for some help.  The only way to input the p'ship paid tax is to go into Forms mode (upper right hand corner on the screen).  Then scroll down the forms list to the NC D-400.  Click on that.  Go down to the box for Line 21c worksheet.  Enter the tax and income amount.  The tax will appear below that, on line 21c.   Go back into Step-by-Step mode.

They obviously need to create an input line for the NC K-1 for this somewhere in the NC state section. 

[WendyN2]

I am glad it at least worked for you! I will mention the K-1 "thing" to my manager as well.

[tgtheisen]

Additional information... I discovered after using Forms mode to enter the amounts that an input area for the NC K-1 taxes and income  magically appeared in the Taxes and Credits menu of the NC return.  Was this related to my utilizing Forms?  Or was TT making a software correction about the same time?