I have received K1 which has number in Line 1 (Ordinary Business Income) and Line 2 (Net Rental Income) and Turbotax says to enter K1 twice. Do I enter the numbers that are in Line 18, 19 and 20 (especially Code Z 199A) information in both copies of K1 or just the one with Net Rental Income related K1 entry?
When entering two Schedules K-1, each particular item in boxes 1 through 20 is to be entered on only one of the two Schedules K-1. It probably makes sense to put only the box 1 entry on one and everything but the box 1 entry on the other. The reason that it must be split is because the questions that TurboTax asks about the box 1 entry are different than the questions that TurboTax asks about the box 2 entry.
Correct ... enter this as 2 separate K-1 forms ... on the first one enter everything EXCEPT box 2 and on the second enter ONLY box 2. The program will marry the 2 together automatically since they have the same EIN.
Later in the schedule K-1 entry, Turbotax asks about "Aggregation of Business Operations". Since this is the business split up by Turbotax for programming reasons, should the answer be "yes" and should form 8995-A schedule B filled out? I get more of a return with the aggregation of business operations "yes" than without. While I understand that the "Aggregation" was initially created for like small businesses, in this case it is the identical business...
Thanks for your answer!
@genie4 , this aggregation has to do with the QBI deduction. Aggregating them does seem to make sense. However, if nothing on the Schedule K-1 is related to the QBI deduction, it probably doesn't matter.