Turbotax Home & Business says that on the K3, Line 54 is on Part II Section 1, but Line 54 is on Part II Section 2. Am I right about this? I want to be sure to enter the correct information and don't want to assume there is a mistake in the instructions.
Yes, you are correct. The line numbers in Schedule K-3 Part II are consecutive through Sections 1 and 2. But Line 54 does fall under Section 2 - Deductions.
Thank you so much for your response. This puts my mind at ease.
When I entered the amount from line 54 Schedule K-3, Turbo tax does not update. The partnership is using K-3 for the first time (as am I) but their guidance is the net total amount in line 55 (income Line 24 less deductions line 54) is the most accurate way to depict the net gains. Currently, TT is calculating the tax just on the income amount.
Does it update later in deductions or do I have to manually enter those deductions later?
Thank you
Please clarify if you entered the info from Schedule K-3 using Step-by-Step or in Forms Mode. Also confirm this is from Form 1065 Schedule K-3.
You can review your entries in Forms mode by opening K-1 Partner for this K-1. Check to be sure your entries for Box 16 appear as you entered them and that the form has no errors (red exclamation mark). If this form has the correct numbers, please provide more information on how you are calculating the tax applied to this foreign activity in TurboTax.
Hello, can I ask you a question
on schedule k-3 part 2 section 1 line 24 shows US source income of $1797
but on turbo tax (foreign gross income - gross income from all sources (collum G )
do I need to enter $ 1797 or just leave it alone since this is not a foreign income ?
thank you
THANK FOR ASKING THE SAME QUESTION I WAS GOING TO ASKED
ANOTHER QUESTION FOR YOU PLEASE
on schedule k-3 part 2 section 1 line 24 shows US source income of $1797
but on turbo tax (foreign gross income - gross income from all sources (collum G )
do I need to enter $ 1797 or just leave it alone since this is not a foreign income ?
thank you
The K-3 is used to report items of international tax relevance from the operation of a business. If there is no international income, you can uncheck box 16 and e-file your return.
However, you want to make sure you will not be receiving a K-3 at a later date that will include international income. If you receive a K-3 at a later date that provides for international income, you will need to amend your return to have the corrected K-3.