I worked with a stock broker in 2022 who invested a range of stocks on my behalf, and apparently some of them were partnerships that had a K1. We closed and sold all of my holdings at the end of 2022, and I recently got two different K1's for this.
The issue I am having, is the K1's have box 16 checked for a K3, but no K3 has been sent.
The other strange part, one of the K1's is for 0$ income or loss, I literally broke even. The second is literally for 1$ income!
I entered all of the information into Turbo Tax Home and Business no problem for the K1 portion, but it will not let me file my taxes because box 16 is still checked.
Is it safe for me to uncheck box 16 (about the k3), since I both have not received any K3's, and also because one of the K1's is for 0$ income or loss, and the other is for literally $1?
Appreciate any guidance here, thank you so much in advance for your help.
Yes, I would uncheck box 16 and not worry about the K-3s.
I appreciate this so much. And the number in box 21 "Foreign taxes paid or accrued" for both of the K1's is 0, so I think unchecking box 16 seems same because the income is so negligible for both. Thank you for this peace of mind, and of course if I get a k3 in future with significantly different info I will amend.
I have a similar problem. I have investments in four publicly traded LLC's and have received K1's from each of them with Box 16 checked, but with no K3's attached. All four partnerships included a similarly worded cover letter stating K3's would not be available until a later date. One date was June 30, and the other 3 dates were all August 31. I have been advised by a Tax Professional that my only choice is to file an extension before April 18 and file my taxes when I have received and entered all K3 information into my tax return, meaning I will, in all probability, not be filing my taxes until September. By default, it would seem that I have to treat my State taxes in a similar fashion. I would appreciate any comments that add further insight into this situation.
Box 16 is to report foreign income. Many have received the K-1 with box 16 checked knowing they will not be receiving a K-3 or received a K-3 with it listed as US income. If you know you are not going to have foreign income or do not believe you will have foreign income, you can go ahead and file your returns and uncheck box 16. However, if you receive a K-3 with foreign income listed you will need to amend your returns to include the K-3 income.
If you know you are going to receive a K-3 with foreign income it is best to file for an extension and file when all documents are received. However, as stated above, if you do go ahead and file and receive the K-3 with foreign income, you can amend your returns to add in the additional income.