Schedule K-3 (form 1065) Part IV info - no TT data entry screen available?

[LinnyH]

Using TT Premier desktop.  I have a Schedule K-1 with Box 16 checked AND I have a Schedule K-3 with Parts I, II and III blank.  TT only walks me through the Parts I, II, III screens, then exits out of offering any further Schedule K-3 entry.  Smart Check is throwing an error (I believe) because of this.  How do I enter my Part IV info?  Is there an update coming to support this?  Of note, the partnership operates solely in the US - there is no foreign income or tax to report.  I am blocked from being able to finalize and file my return due to this issue.

[AliciaP1]

If the only activity on your K-3 is identified as US sourced, you can uncheck Box 16 and not enter the information since the K-1 entries only report sections I, II, and III.  Part IV of your K-3 is used to calculate any section 250 deduction for FDII on Form 8993.  Since TurboTax does not support this form you will need to complete it separately if it is necessary for your situation.

See Form 8993 to see if you are required to file the form.

[LinnyH]

I am the author of this question - and just got off the phone with the tax specialist at my partnership.  He explained to me that I can uncheck Box 16 on the K-1 entry screen and ignore my K-3 because I don't meet the criteria required to report the info that is pulled from the K-3 to populate Form 8993 (which is what Part IV of the K-3 is all about).  If you have no source of foreign income/your partnership is a US-based entity ONLY, and you are in the quandary that I was in prior to learning what I just did, you probably can do the same, but I am no expert so I suggest consulting IRS Form 8993 Instructions for more info and also contact your partnership for clarification.