K1 foreign source for income on k1 Wks-Partnerships Additional Info

[carolyn0129]

TT "Additional Info 1:Fgn Tax Code I Ln 2 col 3 is listed but no foreign source inc at ind level listed on K-1 add.info worksheet l Line 1." k1-1065, Box 16.

How to distinguish US source and Foreign source income? Sch k-1 worksheets  for Box 16 has codes: 
(1065 box 16 Foreign Transactions )

A  Other countries (not specified which)

B Gross income, all sources 

G Foreign gross income 

I Deductions allocated at indiv level, interest exp  

N Deductions, general cat 

P Total for tax pd

Code H is NOT shown on the K1. But TT finds an error if I don't list a foreign income source. Not a number, but only choices on TT are:

lump sum distribution, 901j income, Income resourced by treaty

I called the company with the K1, but they have no other information. The source is not listed on the k1.  What should I use?

[Anonymous]

for a use "various"  

[carolyn0129]

Thanks, but I did use "various".  Now, in the worksheet, it wants me to name the source of the income. I can't say "various" there but must choose one of three answers.  I have no information as to which one to use:

   Lump sum distribution

   901j income

   Income resourced by treaty

I can choose one or leave it blank. If I leave it blank, TurboTax continues to flag it as an error that needs to be corrected.

[carolyn0129]

I replied two days ago because your answer didn’t help. Can you read my previous reply and, I hope, answer my question? Thanks.

[daveylove]

Im having the same problem and have not been able to fix it

[daveylove]

Same problem and I specify Canada on Box 16 A

[hdac2009]

Hi Carolyn - did you ever figure out how to resolve this?  I'm having the same problem this year.  Thanks.

[carolyn0129]

So far I have unchecked Box K as some others recommended. That helped. Currently, I am waiting for March 31st when TurboTax said their K3 section (needed for my K1) will be available. So...haven't been able to finish taxes yet. 

[hdac2009]

Thanks Carolyn!

I spent two hours on the phone with TurboTax help yesterday and I found their coding error under Box 16a Foreign Tax Code I:  they have it coded as Interest Expense allocated at the Individual Level and on my K-1 from the Company, it is Interest Expense allocated at the Partner Level.  It didn't have any bearing on my return so she moved it from Foreign to US Income.  I didn't really like that solution but since it didn't change anything on my overall return, I let it go to make the error go away. 

Let's hope we don't have the same problem this year! 

Thanks again for your assistance and Happy St. Patrick's Day!

Sincerely,

Harry

[carolyn0129]

Thanks for sharing the information. I will have to check that section again. Still waiting to know what to do for the K3 part of the K1.

Let’s hope that TurboTax (or the IRS?) is better prepared for K1 forms next time.

Carolyn