How to enter K-1 Form 1065 & supporting forms

[lhgolfer]

My CPA prepares our LLC (wife is 95% owner/partner & I'm 5% partner) K-1 form 1065 and supporting forms. We have income from our property management business from other property owners we contract with as well as a couple of our own properties in the form of rentals. I'm aware I need to create separate K-1s in Turbotax for each partner as well as boxes 1 & 2 on each K-1. How do I enter all the correct figures into Turbotax? ie: K-1 Line 18 code C; K-1 Line 20 code AH (has figures for 2016 - 2018 & Interest Expense); 199A that lists Columns A, B & C. Col A appears to reference the figure in Box 1 of K-1 form 1065. Col B lists Net rental income for one of our properties & Col C does as well. Col A also lists W-2 wages. There's a line for Qualified property for each Column with figures listed for each.

[DavidS127]

Yes, you will need to enter 4 K-1s in TurboTax, 2 for each of the partners.   One set will be for the box 1 income, and one set will be for the box 2 income.  If any of the other lines on the K-1 from the LLC (line 18 or line 20 code AH) are specifically related to the ordinary business income or the rental income, put that line amount on the applicable K-1 (“box 1” K-1 or the “box 2” K-1).  If it doesn’t specifically relate to one or the other, just put it one of the K-1s you are entering for that partner.

The Section 199A code Z amounts on the statement appear to relate to either the business income (column A) or the rental income (column B).  So, put the column A amounts on the “box 1” K-1 and the column B amounts on the “box 2” K-1 for each partner. 

Remember that to enter the box 20 code Z amounts, first enter the code Z when you enter the K-1 box 20 screen, but you don't need to enter an amount and can leave the amount box blank.  Continue on, and you'll find first one screen "We need some information about your 199A income or loss" and then another  "Let's check for some uncommon adjustments" that are used to enter the box 20 code Z Section 199A Statement amounts.  When you check the box next to a category, a place will open up to enter your amounts.  The applicable boxes on these screens must be completed in order for your box 20 code Z information to be correctly input into TurboTax.  And you’ll do this twice for each partner—once for the box 1 K-1 and again for the box 2 K-1 but only with the amounts related to that K-1 (e.g., business income or rental income).  Note that the Qualified property amounts go in the “UBIA” category on each K-1.

Here are screenshots of the Section 199A entry screens you’ll be looking for:

[jawntang]

Hi David,

This was a very helpful post addressing my current questions.  To clarify, are Lines in Part II (ie. lines J-N) to be placed on both K-1s or on just one?  Thanks!

[ThomasM125]

You should enter that on both K-1 schedules. The information may be the same, but often it is not.