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Entering a K-1 with K-3 info, with emphasis on forms mode

Entering a K-1 with K-3 info. 

I use forms mode almost exclusively, but I am willing to go to an interviews that addresses the K-3 of the one K-1 that I have downloaded.

 

My new 1065 K-1 has a Foreign Information For Form K-3 section.  It includes these items with amounts:

Foreign Information For Form K-3, Part II and Other Relevant Sections
Gross Receipts Sourced to US
Passive Category Gross Receipts Sourced to Canada
Cost of Goods Sold Sourced to US
Passive Category Cost of Goods Sold Sourced to Canada
Partner Sourced Income
Other Income Sourced to US
Passive Category Other Income Sourced to Canada
Other Deductions Sourced to US
Passive Category Other Deductions Sourced to Canada
Partner Sourced Interest Expense

Other Foreign Information For Form K-3
Subpart F Income 0
Passive Category Partner Sourced Foreign Taxes Accrued

 

The K-3 worksheet section on the K-1 form has somewhat similar boxes, but there are big differences. Here are the Turbotax worksheet lines:

Schedule K-3 - Foreign Transactions Smart Worksheet

Line
A Name of country or US possession
B Gross income from all sources
C Gross income sourced at partner level
D Reserved
E Foreign branch category‘-
F Foreign gross income-Passive category-
G Foreign gross income-General category
H Foreign gross income-Other--
| Deduction allocation at individual level-lnterest expense“
J Deduction allocation at individual level-Other**
K Reserved
L Deductions-Foreign branch category_
M Deductions-Passive category
N Deductions-General category--
O Deductions-Other
P Total foreign taxes paid
Q Total foreign taxes accrued
R Reduction in taxes available for credit
S Foreign trading gross receipts
T Extraterritorial income exclusion
U Reserved
V Reserved
W Section965information
X Other foreign transactions
Y Reserved

 

I have three questions:

1. How would I relate the K-1 tax package info to the Turbotax K-3 boxes in forms mode?

2. Is B Gross income from all sources my AGI, or is it some number from this K-1?

3. If I were to try the interview on this section, how would I get to the right spot in the interview? "Show Topic List" has nothing relevant that I find. My attempt had the interview asking if I got K-1s from each of those I had in 2022. I will have some them. I don't have them now, but I have the one I already entered.

 

I understand that nobody is going to make a complete answer to my question 1, but if I get going, I might try, and post my conclusions. Answering or commenting on any part would be helpful.

 

https://ttlc.intuit.com/turbotax-support/en-us/help-article/schedule-k-3/enter-schedule-k-3-turbotax... did not help me.  I have been putting K-1s into TurboTax for a long time.

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1 Reply

Entering a K-1 with K-3 info, with emphasis on forms mode

ignore US column

Line A: Name of country or U.S. possession - Enter from Schedule K-3, Part 2, Section 1, Line 24, description column(a,b,c)

Line B: Gross income from all sources - Enter from Schedule K-3, Part 2, Section 1, Line 24, Column G

Line C: Gross income sourced at individual level - Enter from Schedule K-3, Part 2, Section 1, Line 24, Column F

Line E: Foreign gross income - Foreign branch category - Enter from Schedule K-3, Part 2, Section 1, Line 24, Column B

Line F: Foreign gross income - Passive category - Enter from Schedule K-3, Part 2, Section 1, Line 24, Column C

Line G: Foreign gross income - General category - Enter from Schedule K-3, Part 2, Section 1, Line 24, Column D

Line H: Foreign gross income - Other - Enter from Schedule K-3, Part 2, Section 1, Line 24, Column E

Line I: Deductions allocated at individual level - Interest expense - Enter from Schedule K-3, Part 2, Section 1, sum of Lines 39-43, Column F

Line J: Deductions allocated at individual level - Other - Enter from Schedule K-3, Part 2, Section 2, Line 54 minus the sum of lines 39-43, Column F

Line L: Deductions allocated - Foreign branch category - Enter from Schedule K-3, Part 2, Section 2, Line 54, Column B

Line M: Deductions allocated - Passive category - Enter from Schedule K-3, Part 2, Section 2, Line 54, Column C

Line N: Deductions allocated - General category - Enter from Schedule K-3, Part 2, Section 2, Line 54, Column D

Line O: Deductions allocated - Other - Enter from Schedule K-3, Part 2, Section 2, Line 54, Column E

Line P: Total foreign taxes paid - Enter from Schedule K-3, Part 3, Section 4, Line 1, on Page 8 or 9 depending on income category, if "Paid" is checked

Line Q: Total foreign taxes accrued - Enter from Schedule K-3, Part 3, Section 4, Line 1, on Page 8 or 9 depending on income category if "Accrued" is checked

Line R: Reduction in taxes available for credit - Enter from Schedule K-3, Part 3, Section 4, Line 1, on Page 8 or 9 depending on income category if "Accrued" is checked


The following lines are not provided in the program. Enter on appropriate tax form.

Line S: Foreign trading gross receipts
Line T: Extraterritorial income exclusion
Line W: Section 965 information
Line X: Other foreign transactions
Line AA: Gross receipts per Regs 1.59A-7(e)(2). Current year.
Line AB: Gross receipts per Regs 1.59A-7(e)(2). First preceding year.
Line AC: Gross receipts per Regs 1.59A-7(e)(2). Second preceding year.
Line AD: Gross receipts per Regs 1.59A-7(e)(2). Third preceding year.
Line AE: Base erosion tax benefits from base erosion tax payments per Regs 1.59A-7(d)
Line AF: Amounts included in the denominator of the base erosion percentage per Regs 1.59A-2(e)(3)(i)
Line AG: Section 951A (GILTI) information. See instructions for Form 8992.
Line AH: Foreign derived intangible income (FDII) information
Line AI: Section 864(c)(8) foreign partner's distributive share of deemed sale items on transfer of partnership interest

 

 

as you'll note Turbotax only handles some info through Part III section 4. anything beyond that and you are on your own. 

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