Form 1065 K-1 and individual Turbo tax not accepting income/loss amount

[user17711936670]

I've used Turbo tax since 1997 for my rental properties.  I finally sold my rentals and filled out the sale information. Turbo tax entered on K-1 Line one ordinary income $0 and line 2 rental loss.  For some reason, the 1040 individual (not business) audit keeps telling me to remove the K-1 line one zero and and the line 2 rental loss. If I remove the zero, it adds $24,000 to my tax liability.  If I remove the rental loss, that also adds thousands of dollars.  It almost sounds like it is not accepting most of the info on the form generated by turbotax 1065. ARe there issues with K-1? 

[M-MTax]

I'm going to page @AmeliesUncle for this one, but you have absolutely no entries on Lines 9a, 9c, or 10?

[AmeliesUncle]

As M-MTax said, if you sold the property at a gain, it is very possible that the numbers on lines 9 are very large, which could drastically increase your tax.

As far as why it only triggers when you get rid of the zero in Box 1, TurboTax isn't set up for amounts in Box 1 and 2 (you need to enter them as separate K-1s), so I'm wondering if the program isn't taking into account the amounts in Boxes 9 until you get rid of that sort-of error.

[user17711936670]

What I am gathering is that TT business should have created two separate k-1 forms.  One for the sale of the rental properties and the other for the actual rental income and expenses for the year.  So far,  the 1040 and Ohio taxes are not accepting the K-1 from the TT business.  I am having a hard time finding a CPA who is willing to come in at this late stage especially because I've used TT for 29 years.  I relied on TT.  It's sad that their program cannot accept their own generated K-1 form. It doesn't seem that they care to fix it because I keep updating but nothing is working. 

[M-MTax]

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@user17711936670 wrote:

What I am gathering is that TT business should have created two separate k-1 forms. 

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No, that is not the way it is supposed to work when filing a 1065 and associated K-1s.

As @AmeliesUncle wrote: "TurboTax isn't set up for amounts in Box 1 and 2 (you need to enter them as separate K-1s)". Thus, you just need to enter the K-1 you have twice, one for Box 1 and one more time for Box 2. You don't want TurboTax Business to generate two separate K-1s just because you have figures in Boxes 1 and 2.

[user17711936670]

So I'm expected to do my own seperate k-1? What about the rest of the numbers?  I don't know which codes go to which income/k-1. The reason I was using Turbo tax is because it was supposed to put the numbers in their right location after I complete the interview.  It shouldn't be on me to figure out.  Have you seen how much their program costs these days?  You can't imagine how disappointed I am with TT. I even googled the issue and here is the answer. 

Yes, TurboTax users have reported several, often recurring, issues with Schedule K-1 forms, particularly regarding blank pages when printing, calculation errors, and data not transferring correctly, according to TurboTax Support discussions. These problems are frequently found in the Business/Desktop software and often require manual workarounds, such as updating to the latest version or using different PDF

[M-MTax]

Try entering the first K-1 with just the Box 1 figure and then enter another with the figures in Box 2 and the figures in the other boxes.

[user17711936670]

But Box 1 relates to the the sale of the properties. The other boxes have gains and gains from the sale of the properties.  So if I do a second K1

This is the k1 form that was generated by 1065 form. When I enter it into my 1040, the review wants me to remove the entries on line one and two and keep them empty (no entry).  Why is it doing that? The form was generated by Turbo tax business. 

[M-MTax]

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@user17711936670 wrote:
 Why is it doing that?

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Try it the other way, I suppose. This is one of the quirks of TurboTax.

[user17711936670]

Which other way do you mean? 

[M-MTax]

Don't enter Line 1 and Line 2 at the same time. 

Pretend as if you have two K-1s; Enter Lines 1 and 2 as separate K-1s. For example, enter just Line 1 as the first K-1 and then enter the second K-1 with Line 2 and all of the other lines. If that doesn't work, reverse the procedure.

[user17711936670]

What about the rest of the numbers on the k-1? Which form gets the other numbers on it? 

[M-MTax]

Try it both ways. I suggest trying the other numbers with Line 2.

[AmeliesUncle]

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@user17711936670 wrote:

What about the rest of the numbers on the k-1? Which form gets the other numbers on it? 

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The properties that were sold - did they used to be rental properties?  If so, enter those amounts/boxes along with Box 2.

Does your Box 1 show zero?  Was there any business activity not connected to the rentals?  If not, there is no need to even think about Box 1 or entering a split/second K-1.

[user17711936670]

while my properties are the rental properties, there's capital gains from the sale, box one has an entry of zero.  But if I remove the zero, the program adds several thousand more in tax liability than with the zero included.  Again, I shouldn't have to put so much effort into figuring out the program and keep guessing.  Turbo tax should automatically do so.  It's their form to begin with. In fact, Turbo tax should have the TT1040 import the information from the TT 1065. But it doesn't import.   All of you who use Turbo tax, when it comes to selling assets and trying to get a CPA to review or even start the return from scratch, you will find that most CPAs are not willing to take you on. Just telling you what I've experienced.  Anyone from TurboTax willing to chime in? Last year I paid extra to have someone from Turbo tax answer the questions. The person gave a generic answer and wouldn't let me send her the form to look and see if I did it right. She said she couldn't do that. So, I'm reluctant to waste my time and money doing that again.