Rental LLC - Husband and Wife Sch K1 - Unable to E-File as Royalty box is 0, and turbotax mandates to create Sch E profile for that business.

[RafH]

Rental LLC - Husband and Wife Sch K1 - Unable to E-File as Royalty box is 0, and turbotax mandates to create Sch E profile for that business.

background - LLC owns only one property. filing in home and business; schedule K1 has entries in Box 1 and Box 2. it has Zero in both of our K1 Royalties Line r

I tried the following

• Removing Zeros in Royalty section in Sch K1 in both me and my spouse entries
  • Schedule E Worksheet - turbotax again asks me to fill this info

Error: Schedule E worksheet Line 4 Royalties K1 income from rental real estate and income from royalties must be reported as separate properties on schedule E

[PatriciaV]

If your Schedule K-1 has amounts in both Box 1 and Box 2, you will need to add another K-1 to report Box 2 only. Even if there is no income to report, splitting the box entries will resolve the Smart Check message.

Enter all the information from Part I and Part II of the K-1 on both copies. Include all information from Part III on the first copy - except for the amount in Box 2. The second copy should have only the amount in Box 2 from Part III.

If, however, you received additional information with Schedule K-1 that provides the breakdown of the amounts in the other boxes, use this info to split the other box amounts between the K-1s. Otherwise, follow the instructions above.