K1 Boxes 1 & 2

[bama21]

I have a K1 that has a business loss (box 1) and a rental gain (box 2).  I have tried entering several ways since Turbotax says to to create 2 K1s.

If I enter the business loss on one K1 and the corresponding items in box 17 with the info just relating to the loss, and then do the other K1 with the gain and related gain in box 17, the QBI and deduction does not match my shareholder basis sheet.

I tried doing separate with each filled out completely and it doubled the QBI.

If I only enter 1 K1, then all the numbers match my shareholder basis sheet but Tubotax says I have to do them separately. 

Each method produces a different amount of tax owed.

Sorry if this is confusing, but I am confused.

Thanks

DC

[AnnetteB6]

TurboTax does need to have the information reported on two K-1s when the nature of the income is in more than one category.  You will enter one to report the income reported in box 1 and a second K-1 to handle the income reported in box 2.  The second K-1 will have the same basic information as the first one (name, Federal ID number, etc.), but it will report the income for box 2.  

As for the other items reported on the K-1, If you have enough information provided with your K-1 so that you can divide the items between the business and rental portions of the K-1, then you can do that and report each deduction item with the appropriate income.  Just be sure that the total between the two K-1s does not exceed the amount reported on your single K-1 form.  Do not duplicate any entries.

Or, you can include everything but the income in box 2 on the first K-1 and then for the second K-1, only enter the income shown in box 2.    

Be sure that when you are entering the information for the QBI deduction that you have gone through all of the follow-up screens to enter the additional information required for QBI.

[edited 3/26/2022 | 8:05 am PST]

@bama21

[bama21]

Thanks. I think I finally got the same numbers doing it both ways you suggested.

Just to confirm.

I entered all of the information from my on the business K1 including Box 17 for both business and rental (including the follow up screens).

On the rental K1, I only put the box two info and left all of the follow up screens blank.  This seems to make everything balance.

Thanks

@AnnetteB6