Schedule K-1 with Multiple Activities

[hoken]

I have a Schedule K-1 with Box 1 ordinary Business Income and Box 2 Net Rental Real Estate Income. Also in Statement A - QBI Pass-through Entity Reporting, there are 2 columns with numbers. One column has the ordinary business income. The second column has the rental income and W-2 wages. I need help with the following. Thank you!

• I understand that I need to create two K-1s in Turbo Tax. But for the numbers in box 4 to box 17, do I need to split the values or could I just fill the first K-1 with the numbers and leave these boxes blank in the 2nd K-1? I do not have the information to split the numbers.
• When I created two K-1s, Turbo Tax also asked me to fill up two Form 7203. Is it possible to use one Form 7203 for both K-1s?
• How should I answer the question "Is the business generated the Section 199A income a separate business owned by the S Corporation?" Basically our LLC invested in a project and received the money from the company that runs the project. I received money from our LLC, not from that company directly

[AliciaP1]

You should not split any of the box amounts.  

If both Box 1 and Box 2 are a loss you are going to have to report both 7203s.  You will show the same beginning basis and contributions for both but report the box 1 loss amount on the K-1 with that loss and report the Box 2 loss amount on the K-1 reporting Box 2.  If only one of the boxes has a loss and you have a distribution in box 16 code D, be sure to report the loss and box 16 on the same K-1.  This will eliminate the need for 2 7203s. 

Finally, based on your statement, your business generates the income itself, so you will answer no.

[hoken]

@AliciaP1 , Thank you for the reply. I have a loss in box 1 and a gain in box 2. There are also numbers in box 8c, 9, and 16. I seems that if I enter these numbers on both K-1s, the gain in box 8c and 9 will be double counted. Therefore should I just enter these gains (box 8c and 9) in one K-1 and leave them blank in the 2nd K-1? Also do you mean that I should leave box 16 blank in the K-1 used for the gain in box 2? Thanks!

[BSKelley]

I have a number of K1s which have multiple activities (amounts showing in box 1 and box 2).  I understand that it becomes necessary to create 2 K1s in TT, but, not knowing which information is used in what way, I do not know how to properly fill out each K1.  I've tried using "Live Help", but that person did not understand it as well as I did (and I specifically asked for someone familiar with this precise situation).

How can I get connected with someone to either help me do this correctly, or to do it for me (I'm perfectly willing to pay!) who I can be certain understands what they are doing and will do it correctly?

[KristinaK]

Generally, the breakdown can be done this way:

The first K-1: Box 1 and the rest of the boxes. 

The second K-1: Box 2. 

My suggestion for contacting TTLive is to place a call and then ask for a callback of a tax pro that specializes in Schedule K-1s. Hope this helps!

[KenK]

Thank you for the explaination for splitting the K1 into 2 entries of K1's for box 1 and 2 (enter all numbers in boxes for box 1 K1 and for the box 2 K1 do NOT enter the numbers from the other boxes.  But what about when TT asks us to fill in W-2 wages and UBIA  #'s and section 199A  income #'s that are on the following sheets of the K1 package?  Do we enter those in just one of the Box 1 or Box 2 K1's ?    If the K1 was for an apartment fund with a few bldgs. we have to add up all the numbers in each column for all the bldg.s to fill in the total for the W-2 wages and UBIA #'s and also the section 199A income?      Thanks so much

[PatriciaV]

You will need to identify the source of the Section 199A income - was it ordinary income from Box 1 or Rental income from Box 2?

If you have several rental properties that contribute to QBI, you will need to enter the totals in the related QBI boxes in TurboTax.

@KenK