K-3 instructions

[potentilla]

on the turbotax instructions for completing information from a schedule K-1 most of the questions tell us exactly where to look to find the data, for example the Part, section, and line. However, when it comes to "Enter Income Detail" which asks for foreign income from the K-3, it doesn't give a clue how to find the Foreign source of income. Can more detail be provided on how to find foreign income on the K-3?

[MelindaS1]

For most people with typical business and investment, these are the parts of the Schedule K-3 you'll want to use to derive your foreign-source income:

Do not use U.S. amounts, if listed on lines A, B, C. 

I've included both the Gross and Net Income sections, because I don't know exactly where you are in the program or which values you need. Can you say more about what specifically the question is asking? 

Note: Schedule K-3 reports numerous different types of foreign and investment disclosure situations, many of which are way too complicated for most people to worry about. However, take a look at the face of your K-3 and verify which sections have been checked "Yes" as included. Make sure you are not missing any tax return inputs from these additional reporting sections, if included. 

See also: IRS - Partner’s Instructions for Schedule K-3

[potentilla]

Turbotax title: Enter Income Detail

Then text : Enter the following detail about the foreign income reported on your K-3 for XXX fund, LP

Then it list a table with columns for:  total,   US source , and foreign,

Table rows for Gross income, Interest expense, and Other expense, wanting me to list US source and foreign.  The total column  and US source are already filled in for the three rows.

[MelindaS1]

See the screenshots above in my earlier post. 

Use Part II Section 1 for Gross Income - U.S. Source is column (a) and Foreign-Source amounts are reported in columns (b) - (e). 

For expenses and deductions, use Part II Section 2 - likewise, Foreign-Source amounts are reported in columns (b) - (e). Interest expense is reported on lines 39 - 43. 

Follow where the foreign-source columns (b) - (e) intersect / cross with the expense rows labeled in the Description column, when using this grid to identify the items being asked about from your Schedule K-3.