Form K-1 Review says need to "use separate K-1 Worksheets to report more than one type of foreign gross income". Does this mean making out a new Schedule K-1 ?

[rturnage]

I agree with everyone's frustration.  This has been an issue every year.  My only solution was to ignore the faults, print out a hard copy and mail my taxes.  Fortunately, this is a minor investment and has never caused any inquiries from the Feds.  My final solution was to call my broker and sell the investment.

[rbeck777]

2018 update:  This is a good way to handle this problem, but the drop down codes (which classify the income) for 2018 have changed (thanks IRS/TT for continuing to screw with us).   When creating the 2nd K-1 with only box 16 entries, move the code D, F, and G amounts to this second K-1.  If your F and G have zeros on the company K-1, don't enter anything.  If you enter code F or G, TT will choke on them, even though the dollar amount is zero. I ended up with a second K-1 with just a box 16D entry.

[peterfng]

I did what rbeck777 did, and he or she is right!  it worked.  No thanks to Turbo Tax.

[rlottsman]

Great input. I also found with The Blackstone Group and Buckeye Partners, if you have information in 16F and 16M, they need to be on the same K-1.  If they are not together, TT will consider it an error and not let you file.  I had to go back after making separate K-1's for each one to combine them.  Also learned the hard way that you don't enter anything with a 0 (zero).  Otherwise TT wants more and you don't have it.

[rturnage]

Partial success, but now have one remaining error "Sch K-1 Partnership Add. Info 1: Fgn Tax Code J Ln # col 3 are listed but no foreign source income at individual level has been listed on the K-1 Additional info worksheet Line 1."  Have tried everything and cannot get this to clear.  Anyone ever seen this before?

[rlottsman]

If I'm reading this right, 16J is considered PARTNER LEVEL.  These are the big guys, we are only in the partnership level.  If you look on the K-1 code sheet showing the brackets, don't enter anything that says "See the Partner's instructions."    Anything else which shows a form such as 1040, line 2b or Schedule D, etc.  These are partnership level and we enter those items with values which pertain to your part of that partnership.  
SO...go back into your K-1 entries and remove 16J.  Hopefully this will solve the error.

[rturnage]

Sadly, that did not work.  Still getting the same error.

[rlottsman]

Which partnership are you working on?  Would you mind listing the codes showing in 16?  Maybe I can figure it out.  

[rturnage]

NGL Energy Partners, LP - Box 16 Entries are: A - Canada, B - $32795, C - $0, E1 (Foreign Gross Income Sources at Ptsp Level - Foreign Branch Category - $0, 16J1 (Other - Deductions Allocated and Apportioned at Partner Level) - $3, 16M1 (Foreign Deductions Partnership Level: Passive Category) - $0, 16M2 (Foreign Deductions Partnership Level: Passive Category) - $0, 16N1 (Foreign Deductions Partnership Level: General Category) - $164, 16P1 (Total Foreign Taxes Paid) - $1, G - $172 and I - $251.

[rlottsman]

Okay...let's try this..you will need to have two K-1's for this.  The first will include 16A (Canada), 6B (32,795) and P1 (foreign taxes paid).  The second K-1 will include only 16G (General category) and 16N1 the corresponding general category deductions.)   NOTE:  16C, J and I are Partner Level.  16E, M1 and M2 are zero so leave them out too.  Fingers crossed, this should do it.  Let me know please.

[rturnage]

It worked!  Thank you!!!!!!

[rlottsman]

Happy to help.

[justibone]

For our Blackstone investment, 2018: box 16 M & F on one K1, box 16 D on another K1, everything else on a third K1. That worked for us.

[jtgbakes]

rlottsman, thank you sooooo much!!!  I, too, have a K-1 from NGL Energy Partners and had values in the same categories at rturnage.  I have spent hours and hours trying to figure this out.  I did what you said and TT accepted it!  I am so very grateful to you and very frustrated with TT, especially since I have read this has been a TT issue in the past, as well.

[marc-rosen]

I've been fighting with this for years - very successful approach