K-1 for S-corp has income(loss) in both box 1 and 2 generates two Form 7203s. How do I consolidate them into just one?

[mcdoviedo1]

The requirment to make a separate K-1 for each line of business (Boxes 1,2,3 ) reported on a K-1 for an s-corp has the side effect or generating multiple Form 7203s, one for each (I am working with 2, but I assume it would generate three if there were a need for three virtual K-1s).  Obviously, these need to be consolidated to get a single basis for the s-Corp as of year end.  Each 7203 shows shows errors if you input data from the 'wrong' virtual K-1, specifically for lines 3a - m, though I am sure other places as well.  How can I get a single consolidated Form7203 that incorporates all the necessary fields from both(all) the 'virtual' K-1s created for the same physical one received???  I really need an answer, as October 15 is not far away.

Comment:  I have always wondered why this 1 creates many K-1 work-around has survived.  It is confusing and places a burden on the user to know more than the government seems to actually require to be reported.  A single K-1 worksheet with a column for each line of business (Ordinary, Rental, Other)  where there is a real need to subdivide the K-1 data would be SOOO much better for the user. 

Thanks.

[Mike9241]

I use desktop and don't seem to have your problem on the 7203 only positive numbers (income) go in 3a-m

losses and deductions go as positive numbers on lines 35-46 in part III. enter negatives in 3a-m will generate an error as will enter negatives in 35-46

[mcdoviedo1]

Thanks for the input.  Are you saying that TTax only generated one 7203?  That is odd.  I have tried a number of things, but finally just removed one and  hand entered the numbers that weren't already there all on one form.  I have copy of the federal form7203 provided to me by the CPA that generated the K-1, so it was not much work.  The forms agree on the bottom line now, BUT  TTax seems to not like the fact that the entirety of Part III shows a loss  from the general business (Box 1)while Part I shows a gain from the real estate (Box 2).  If there were separate 7203s for each business line (real estate and general business), this TTax gain/loss complaint would be justified.  But the overall business can only have one overall stock basis, so two 7203s doesnt work.   I guess I will just have to submit with the "error" left there, if TTax will let me.  I can always submit by mail, I guess.  Any additional thoughts?

[Mike9241 · Accepted solution]

i have desktop deluxe so I can use forms mode. i entered simple numbers for the 2 k-1s for a dummy entity I called PPP.  I had an income entry on line 1 of the first K-1. On the other K-1 I entered a loss on line 2. In the first k-1 I opened the 7203 and entered the income from line1 on line 3a and the loss as a positive number on line 36. a second 7203 was generated for the second K-1 which showed exactly the same combined results of both k-1s. I deleted the second one. upon final review there was only 1 7203 with no errors. Print preview shows only one 7203. unfortunately, this is a dummy return so I don't know if the IRS wants one or two 7203s - one way may cause a rejection the other way won't or maybe either way is acceptable.

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I also reentered the 7203 a second time so there was one for each k-1 both identical in that each reported the k-1s in totality. final review  no errors.  I got all the way thru to the transmit the returns which of course I didn't do. 

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in my Turbotax version the 7203 is not generated automatically from the k-1 entries. everything is entered manually. 

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if you are getting errors, I would suggest you contact support

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i switched around my k--1's so they were like yours loss on line 1 and income on line 2

i then went and since i left in both 7203s i had to change them

line 2 income is now reported on 3b not 3a

line 1 loss is now on line 35 not 36 again as a positive number

no errors. 

[mcdoviedo1]

Thanks, Champ.   

Hmmmm.  These details give me hope.  I will fiddle around using forms directly and see if I can overcome the issue I am having.  Do your dual K-1s have the same name?  I initially had different names (but same identification internally) and thought that might be the problem, but then changed the names to be same.  That did not have any affect.  I may just start over and follow the pattern you suggest.  Thanks again.

[mcdoviedo1]

Champ --  Update.  So, I deleted all entries for the s corp in question and started over, using the same name for both K-1s and performing operations in the order you outlined, doing the Ordinary Business first and Rental Real Estate Income second.  During the interview for the Ordinary Business, a box containing the worksheet for entering 7203 data showed up.  I entered the data relevant to Ordinary Business and finished the entries for that  pseudo-k-1.  During the interview for Rental Real Estate Income pseudo-k-1, there was no mention of the 7203 ( a possible area for TTax improvement ???).  So, I went into forms mode and filled in the additional information to the one existing 7203 and all is well.  So, thanks for experimenting and giving me a path so success.  Not sure what happened in my original try that made it go crazy, but all's well that ends well.. Thank you again.  I will mark your last messsage as the best answer.