I have both ordinary business and rental real estate income (box 1 and 2). TurboTax says I must fill out two K-1s in TurboTax which makes sense. I am confused though on K-1 box 11 and the K3 - how do I break them out when I am filing two?
Imagine you are filling out tax form on Xcel Sheet you can go up and down and go left to right.
Turbo Tax software has limitation as it can only go one way lets say left to right. This way you need to fill out 2 k1 and in the end Turbo Tax will merge them in tax forms.
That is way I think one can do it as I don't know anything about your k1 and all other info.
First K1 use all of your K1 data except Rental income.
Next K1s you will list your partnership name, address and ID number but only one data will be there and that will be Real estate/rental.
Does your partnership has income or business outside of USA. Just ask them. If there will be K3. K3 is confusing one as it will most likely come in summer (not sure when) you need to ask your partnership. In most cases they will only send electronically unless you ask for paper copy. Again ask your partnership if there will be k3 and when you will get it.