I have read answers from multiple experts on how in TT need to use 2 K-1s for a K-1 with values in Part III Box 1 (BI) and Box 2 (RE). The expert answers differ on which of the other boxes in Part III (4 to 20) should be put into the two K-1s (two examples below). Would appreciate a tie-breaking (definitive answer?) for which K-1 to put values in box 4-20).
One TT Expert (AliciaP1) says to create one K-1 for Box 1 (BI) and include ALL boxes 4-20 with values, except for Box 17 or Box 20 containing Section 199A info. In the second K-1, she says enter Box 2 value (RE income/loss) and ONLY enter Box 17 or Box 20 Section 199A info. (I am assuming she means by 199A info Box 20, Letter Z?)
Another TT Champ (Tagteam) says that on the K-1 with Box 2 info (RE), should also enter Boxes 9c and 10 values
There are other TT responses with slightly different answers.
So for a K-1 from an LLC partner that has box 1 and box 2 values, can someone list which boxes 4-20, should be in the K-1 with the Box 1 value and which boxes should be included in the K-1 with the box 2 (RE) value
I can only give generalities because the correct answer in some cases depends on the nature of your partnership activities and the natur of what the partnership itself is doing
lines 4 thru 10,13,15,16,18,19 can go on either K-1 but note that a 1231 gain is not included in the QBI calculation by a 1231 loss is
which K-1 items go depends on their nature. some can go on either k-1
line 12 goes on the activity that the deduction relates to
line 14 only the business k-1
line 17 can relate to rental line 2 or royalties which would go to schedule E page 1
lie 20 is all over the place except for 20Z which really doesn't get entered on line 20 in Turbotax because it has a special line 20Z with a quicklink in forms mode to enter the QBI info.
if you are a limited partner or LLC member that is noot a mmember manager then the business income loss can be passive which would flow to form 8582,. A member manager in an LLC would make the business income /loss line nonpassive
not the same with rental real estate under IRC 469 (except for real estate professionals or when the self-rental rules apply) rental income/loss is passive
so it's possible that for some taxpayers the business items would be used in computing QBI but passive rental losses would only be taken into a/c to the extent they are allowed for regular income tax purposes
however, your situation seems to be different in that it appears that the rental activity was disposed of in a fully taxable transaction. in such a case the rental activity is not passive and nothing from this activity should be flowing to the 8582. as a side note if you have suspended passive losses for the real estate activity, it may be necessary to indicate on that k-1 that you disposed of your interest so any suspended losses will be allowed.
as to 9c and 10 as stated it doesn't matter. line 10 flows to schedule D line 11a and the 1250 recapture flows to schedule D line 19. neither effect the QBI calculation or allowable passive losses.
You have my answer already (I think) so I'll page Champ @Mike9241 for another point of view (if his differs).
Understand that this is basically a TurboTax issue as some other tax preparation software providers do not require the same procedure.
I can only give generalities because the correct answer in some cases depends on the nature of your partnership activities and the natur of what the partnership itself is doing
lines 4 thru 10,13,15,16,18,19 can go on either K-1 but note that a 1231 gain is not included in the QBI calculation by a 1231 loss is
which K-1 items go depends on their nature. some can go on either k-1
line 12 goes on the activity that the deduction relates to
line 14 only the business k-1
line 17 can relate to rental line 2 or royalties which would go to schedule E page 1
lie 20 is all over the place except for 20Z which really doesn't get entered on line 20 in Turbotax because it has a special line 20Z with a quicklink in forms mode to enter the QBI info.
if you are a limited partner or LLC member that is noot a mmember manager then the business income loss can be passive which would flow to form 8582,. A member manager in an LLC would make the business income /loss line nonpassive
not the same with rental real estate under IRC 469 (except for real estate professionals or when the self-rental rules apply) rental income/loss is passive
so it's possible that for some taxpayers the business items would be used in computing QBI but passive rental losses would only be taken into a/c to the extent they are allowed for regular income tax purposes
however, your situation seems to be different in that it appears that the rental activity was disposed of in a fully taxable transaction. in such a case the rental activity is not passive and nothing from this activity should be flowing to the 8582. as a side note if you have suspended passive losses for the real estate activity, it may be necessary to indicate on that k-1 that you disposed of your interest so any suspended losses will be allowed.
as to 9c and 10 as stated it doesn't matter. line 10 flows to schedule D line 11a and the 1250 recapture flows to schedule D line 19. neither effect the QBI calculation or allowable passive losses.