Schedule K-1 box K Qualified nonrecourse financing

[appicrusone]

Using TurboTax Businsess to file 1065 for one Residential Rental Property.

CPA did my 2018 tax return, and in Schedule K-1, box K, he entered values for Beginning and Ending Qualified nonrecourse financing, which correspond to the beginning and ending outstanding loan balance for the rental property, respectively.

So, 2019 beginning financing is the 2018 ending balance, and ending financing is the loan balance as of end of 2019.  Where in TurboTax does one enter these values so that they appear in Schedule K-1?

Thank you!

[Irene2805]

The easiest way to enter the partners' share of qualified nonrecourse financing is to enter the amounts on the Schedule K in Forms Mode.   Please follow these steps:

1. Go to Forms Mode by clicking the Forms icon in the top right of the blue bar.
2. In the Forms in My Return list, click Form 1065, p4-5.  The form will open on the screen to the right.
3. Scroll down to the Partners' Liabilities Smart Worksheet (past Schedule L and just before Schedule M-1).
4. Enter the total amounts of Qualified Nonrecourse Financing in the beginning and ending balance columns.
5. TurboTax will enter the amounts on the individual partners' K-1s according to the their percentage in the partnership.
6. To return to the interview, click on the Step-By-Step icon in the top right of the blue bar.

[appicrusone]

Thank you!  That did it!

[ecomajor]

I have a similar but slightly different situation for 2019

I have an llc with another person where we invest in real estate projects as passive investors.  We get lots of k1s.  One of the k1s has this in it, but I dont see any way to enter this in turbotax business 2019.  Any advice.  

For now I entered it as a single aggregated item like this

is this correct?

[DavidS127]

The liabilities being reported in box 20 code AH for the “pass-through” partnership are relevant to the individual partners in the partnership preparing the Form 1065.  So, each partner’s share of those box 20 code AH liabilities will be reported in box 20 code AH on that partner’s Schedule K-1.  The individual partner will then take those liabilities into account when calculating the at-risk limits related to their partnership interest on their individual (Form 1040) tax return.

See the section of IRS Publication 541 at this link for more information on the effect of partnershi....

@ecomajor

[susan483good]

I am completing schedule K-1, box K in TurboTax Business Software. 

When I enter the mortgage under the step-by-step questions on the Balance Sheet, TT assumes that the loan is nonrecourse. All partners are guaranteeing the loan. TT populates the Qualified Nonrecourse Financing box.

In the step-by-step, there is no question for recourse liabilities. If I manually enter into the 1065 Schedule L, it populates the Recourse section of the Partnership Liabilities Smart Worksheet, but that isn't flowing through/populating the individual partner's K-1 for recourse liability. Nothing shows up in the Partner K-1 liabilities. I can't override any of the amounts on the partner's K-1. How can I input a Recourse Liability to report on the partner's K-1s?

Thanks.