Box 1 AND 3 Schedule K-1 - do I really have to file 2 K-1s for the same business?

[aE]

I received a K-1 that has amounts in both box 1 (ordinary business income) and Box 3 (other net rental income). When I check the box that it reports in more than one of boxes 1, 2, and 3, I got the below message saying I have to enter separate multiple K-1. TT started with Box 3 and I just entered in all the details. 

Do I understand correctly that I have to start over with a new K-1 now for Box 1? and if so, do I have to re-enter everything in all the other boxes 4-20 which seems like it would double count? Or am I simply entering in one number for Box 1 detail and skipping everything else? Seems duplicative?

"Since your K-1 reports amounts in more than one of boxes 1, 2, or 3, the partnership/LLC is involved in more than one type of activity. You should treat each activity separately in TurboTax.

Enter the business activity amount, box 1, on one K-1
Enter real estate rental activity amount, box 2, on another K-1
Enter other rental activity amount, box 3, on a third K-1.

This will allow TurboTax to properly track your loss carryovers. This is especially important if you ever sell your interest. For all amounts reported following Box 3, look for a statement attached to your K-1 to help you allocate these amounts to the proper activity."

[Mike9241]

yes, 2  k-1 are required in Turbotax. box 1 and related items are entered on one box 3 and related items are entered in another K-1. Certain items (nonpassive) don't matter like interest or dividend income. 

the real reason is that if the partnership were to dispose of one these activities any suspended losses for just that one would then be allowed while the losses of the other would be suspended. also, the nature of the activity disposed of changes from passive to nonpassive.  

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The problem arises when you dispose of the partnership investment, then you need to enter disposal information for both k-1's so that both k-1s go away when you roll to next year and all suspended losses are allowed.  

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I had a situation where I had multiple activities and used multiple k-1s. then I sold but the final k-1 did not separate disposal info for each activity. 

[aE]

Thank you @Mike9241 . 

Just to be clear, since I already finished this K-1 for Box 3 and it was comprehensive: the K-1 had values in almost 20 other boxes incl a K-3. You're saying I create an additional K-1 for the same name partnership and only check Box 1 when it starts the interview, only enter in one value (Box 1), and skip everything else since I already entered it in for the first K-1? 

[Mike9241]

not quite.

on the k1 in part III there are 21 lines that can have amounts

some of these lines in total can be entered on either k-1 (but only 1) because they are not passive or have no effect on tax reporting such as line 19 distributions (you could even skip entering line 19 because Turbotax doesn't use it for anything). Turbotax requires that the amounts on line 1, 2 and 3 be entered on separate k-1s so up to three are needed.  

I can't tell you which k-1 certain lines would go on. The partnership should have provided that info - usually it would be in the form of a schedule with a column for each activity and the amounts on each line. for example, an amount on line 12 - section 179 deduction could be for either activity or maybe the total for both. proper reporting would require reporting the amount on the k-1(s) for the activity that generated the amount.