Schedule k-1 has a value for both Box 1 and 2

[rhondajoy125]

My husband and I each receive a schedule k-1 for an LLC we jointly own and is a Rental Property.

Our tenant included the security deposit on the 1099-MISC as such, Box 1 of the Schedule K-1 has a negative number that offsets the income shown in Box 2.

The K-1 shows the Rental Income (inclusive of the security Deposit) in Box 2 and the Ordinary Loss (Security Deposit) in Box 1.

When I entered the K-1 information for each of us I started with Box 2 as that is the Ordinary Business of the LLC.

I included all the information from  Boxes 5, 6a, 14, 17 (which is $0), 19 and 20.

I included all the information on Statement A for the K-1 that has Box 2 amount filled in.

Just for information here, I will share that Box 14 of each k-1 equals the amount in Box 1.

My questions are as follows for each of our k-1’s when adding additional K-1’s for BOX 1:

When I go through the screens for Box 1; there are screens that ask about Capital Account, Liability, etc. I left those blank and only put in the value for Box 1. Is that correct?

Subsequently, for the screen that asks about the other boxes, I left them all blank and for the next screed said that the k-1 does not have a code Z in Box 20. Is that correct?

[JamesG1 · Accepted solution]

In most cases, you are not required to enter into Capital Account, Liability, etc.

You said "....for the screen that asks about the other boxes".  I believe that you are referring to the screen Check boxes that have an amount or are checked on the form.

There may not be an entry for code Z in Box 20, but I would have thought you would have to enter information at the screen We need some information about your 199A income to allow you to pass Review and file.

[rhondajoy125]

Thank you for the clarification about the Capital Account, etc. I am very appreciative for your assistance.

Yes I am referring to the screen that says: 

Check boxes that have an amount or are checked on the form.

After I put in the amount for Box 1.  For that section, I am thinking of not checking any of them,

It is true, there is a screen that asks for information about 199A income but on a prior screen, if I don’t tell it there is something in Box 20, then it only asks me to be certain there isn’t a code Z in Box 20.

So, is it okay for me to tell TT there isn’t a code Z for this additional (Box 1) entry along with not checking any of the other boxes?

[PatriciaV]

If Box 20 doesn't have Code Z, then you should answer "no" to that question. As long as you were able to enter all the information from Schedule K-1, you can leave everything else blank.

[rhondajoy125]

Thank you, I put the Code Z info (which was 0) on the entry screens for Box 2.  When TT made me do a separate k1 for Box 1, that is when I’m keeping box 20 (and code z) blank. 

the dilemma is its information from the same k1 and TT makes us do a separate entry for this scenario when there is more than 1 value on box 1,2 or 3.

so, I think you are saying for my situation  it’s okay for the 2nd k1 to keep box 20 ( along with code z) blank.  Please confirm 

[PatriciaV · Accepted solution]

Yes, when entering separate K-1s for more than one activity, as long as the supplemental information is labelled as to which activity it applies, you can leave those boxes blank for the other activity. Be careful you don't enter the same box twice.