Entering K1

[bmshah1]

I have a K1 for an LLC I'm a partner in. My K1 has entry in box 1 (ordinary business income) and box 2 net rental real estate income. TT is asking me to choose what type of activity this partnership is involved in? I am not sure which option to choose and the help section states choose based on amount in boxes 1-3. My last year's K1 had entry only in box 1. I'm a bit confused now how to enter the values from both box 1 and 2 in TT.

[JamesG1]

The preparer of your K-1 has reported more than one activity on one Schedule K-1.

At the screen Choose Type of Activity, click This K-1 reports in more than one of boxes 1,2, and 3.

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.

So there will be one K-1 entry for box 1 income.  Only click on box 1 and the statement "This K-1...".

There will be a second K-1 entry for box 2 income.  Only click on box 2 and the statement "This K-1...".

The other boxes of the K-1 may refer to either box 1 income, box 2 income or a combination.  The preparer of the K-1 may have included attachments or detail which explain how those items break down.  

[bmshah1]

@JamesG1 does that mean I have to enter the same K1 twice by selecting add another K1 in TT? I'm a bit confused.

Also my K1 has a value in section K1 (partner's share of liabilities) and in section L for beginning and ending capital. Where do I enter these values in TT?

[JamesG1]

You would enter the box 1 income in one pass.  Then enter the box 2 income in the second pass.

Enter the partner's share in one.

[bmshah1]

@JamesG1 Not sure I follow: "You would enter the box 1 income in one pass.  Then enter the box 2 income in the second pass." I'm assuming you are stating I have to select this box and add the same K1 again but not enter the partner's share in the second K1

[Karis_F]

As JamesG1 explained, because your K-1 has information in Boxes 1 and 2, you will need to enter two separate K-1s.

To do this, enter all of the K-1 information in the first K-1 entry except for Box 2. 

Then, Add Another K-1 and enter the basic information from the K-1 (i.e., name, address, etc.) but only enter the amount from Box 2.

This method will result in all of the K-1 information being recorded in TurboTax, with only the Box 2 information entered separately.