Cannot resolve this error with Sch K-1 foreign other expenses -- desperately need help

[zapyoo]

Additional info:

1. This K-1 had income from two different activities - ordinary business income (loss) and Net rental income, so I had to create two K-1s (per TT instructions)
2. This same K-1 had K-3 foreign tax credit info for two countries - IN and MEX.  Per TT instructions I put one country on each of the two K-1s. 
3. This same K-1 had Box 20, Code Z, Section 199A information listing two partners - I put the info for one partner on each of the two K-1s.  
4. I did try editing the numbers.  Last year, one community member was able to resolve the error by deleting the 0.  This did not work for me.  

[AmeliesUncle]

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@zapyoo wrote:

Additional info:

1. This K-1 had income from two different activities - ordinary business income (loss) and Net rental income, so I had to create two K-1s (per TT instructions)
2. This same K-1 had K-3 foreign tax credit info for two countries - IN and MEX.  Per TT instructions I put one country on each of the two K-1s. 
3. This same K-1 had Box 20, Code Z, Section 199A information listing two partners - I put the info for one partner on each of the two K-1s.  
4. I did try editing the numbers.  Last year, one community member was able to resolve the error by deleting the 0.  This did not work for me.  

I'm not sure if I can help directly, but I have a few thoughts:

1) Good.

2) No, unless the rental had a credit for one country and the business had a credit for the other country, you may need to add a third K-1 to split it between the two countries.  In connection with #4 (see below), you may also need to split the income as well (for example, have two K-1s with split Box 1 income).

3) The Box 20/199A information should only reflect YOUR share.  I am unsure why it is referring to both partners.  Also, you enter that Box 20/199A information on the K-1 that is pertains to; if it pertains to Box 1, you put it on that K-1.  If it pertains to Box 2, you put it on that K-1.  If it partially applies to both, you need to split it up based on the nota/statement with the K-1.

4) Right above those two pink boxes is a line that says "Gross income sourced at partner level).  I suspect you need to fill that out.  Right now, that screen thinks you have ZERO foreign income but have paid some foreign taxes.  I suspect it is doing that because of the way you split the K-3/foreign income between two K-1s.

[zapyoo]

Thank you very much for taking the time to help.  Responding to your comments:

2)  I don't know how to determine which countries apply to which income.  I suppose that the most likely is that they both apply to the ordinary business income part.  I get that I need to create a 3rd K-1 to reflect the 2nd country, but do I duplicate the Part III income, expenses, etc.?  This would seem to be overstating my income (or loss).  

3)  TT asks "Is the business that generated the Section 199A income a separate business owned by the partnership?"  The help box says that "if the income reported is from a separate business, you would generally receive... some additional paperwork detailing who generated the income and what category it belongs in."  My K-1 provided the following.    My reading of it is:

a) This is my share at a partner level

b) There are two entities (with different EINs) that contributed to my share

c) I need to list each one - Mozart and Capfinancial to document my Section 199A share

4)  I tried to edit the Gross Income sourced at the partner level and TT will not let me -- it's the first thing that I tried.   I will add a 3rd K-1 schedule and see if this sorts out the problem as you suggest.  

If this does not work, is this something that paying $60 for Tax Guidance will help me with?    Thanks again.  

Phil

[AmeliesUncle]

2) The K-3 shows which kinds of things has foreign income.  You should be able to see if the foreign income is for business, rentals, investments, etc. from analyzing the K-3.   However, I am unsure how to find out how much tax is for a particular amount of income, unless you receive more information from the issuer of the K-1.

No, don't duplicate the amounts; you would need to split them, based on the amount of income from each source (but as I said, I don't know how you can do that without more information).

3)  For simplicity, I would just skip the second line.  It isn't worth the work for $9 of business income, potentially giving you a deduction of $2, and likely not saving any tax.

4) When you split the K-1s between Box 1 and Box 2, did you only enter the $589 and $2267 on one of them?  And does that have income?  I am unsure why it isn't pulling the income and putting it on the form you had showed.

I don't know about paying more for help.  It is hit-and-miss if you get someone 'good', and foreign taxes are definitely among the more complicated aspect of a tax return.  Just checking ... is the foreign tax a large amount?  If it is only a few dollars, I would just leave it off the tax return (it doesn't make sense to pay $60 or more if the foreign tax is less than that).