Section 199a with multiple entries due to 1031

[hardikgandhi]

Hello,

I have invested in real estate through a company. Multiple small investors like me invest a certain minimum amount, and this company uses the collected investment to purchase an apartment complex. This company is also responsible for management of the property and they provide K-1 for it at the end of the year. One such property(called Property A) I invested in was purchased in 2019, and in 2022, it was sold, and its proceeds were invested in another portfolio of apartment complexes (let's call it Property B, C & D) with 1031 exchange.

Now, section 199a of the K-1 looks like the following. My question is, am I supposed to add the rental income, W-2 wages, and Unadjusted basis for all the properties listed in 199a before entering the values in TurboTax? I asked the company contact, but they could not give concrete advice beyond asking me to add it up, which logically didn't make sense. Please note the K-1 I received is only for Property A, not separate K-1 for property B, C & D. I saw responses from @ThomasM125  @Mike9241 and @Irene2805 , but their answers may not be applicable so I am asking here if they can also provide their expert advice here.

Also, which option should I select from the following in this scenario?

[Anonymous_]

I'm going to page @Mike9241 for this.

[Mike9241]

I don't understand. you say only property A is on the k-1. " Please note the K-1 I received is only for Property A". Yet it seems the 199A for all properties is reported on the k-1. this does not make sense. So where are the results for B C and D entered? 

[hardikgandhi]

Thanks for your response. Let me see if I can clarify.

The K-1 in part I about the partnership's name and address calls out Property A. However, only section 199a refers to properties B, C & D below Property A(as I posted in my question).  There is no mention of Properties B, C & D outside section 199a of the K-1.

Properties B, C & D were purchased using the sale of Property A. Section 199A, shows Rental income, W-2 wages, and the UBIA of qualified first for Property A and then followed by Property B, C & D.  I reached out to the company through which I have invested, and their only suggestion was to add all the values up. But they said they couldn't give tax advice beyond that.

A1,A2, A3, B1, B2 ,B3 , C1,C2, C3 and D1,D2, D3 are actual values but I am calling it out as A1, A2... In this post do not show the actual property names ( since this is a public forum)

[hardikgandhi]

I didn't tag the original response in my last response. Tagging @Mike9241 . Mike, please see my response to your question earlier and see if you can help me.

Thanks,

Hardik

[Mike9241]

your statement was that the k-1 only contained the operations of property A. my response was where are the operations for B C and D reported.  that's where the qbi info for them gets entered. I cannot see your return so really can't help any further. 

[Critter-3]

If you are invested in one Partnership then all of the annual information should be reported on the one K-1 form you get issued annually.   Now if the original partnership was closed and another partnership was began then you would/could get 2 separate K-1 forms if there were income/expenses to report as a pass thru to the partners.  It is possible that there was nothing to report on the new properties so you may only see info on property A ... go back to the issuer and ask more questions  and/or seek local professional local assistance.

[hardikgandhi]

Operations of B, C & D are not reported anywhere. the only mention of them is in section 199a, as i have mentioned in my question.

Thanks

[praga]

@hardikgandhi were you able to find out the correct answer to this? I am in exactly similar situation, the difference being I invested in Property B which was 1031 exchange from Property A. I don't know if I am supposed to add up the values from 199a for Property A or not.

[RobertB4444]

Since this is the year of the exchange then the activities being listed make sense since they are made up of all of the activities for the year.  Add all of the different amounts and enter them as one amount in the 199A section.

@praga