Schedule K1 form

[genius7k]

On my schedule K1 form, it says that if you have numbers on part 3, boxes 1-3, you have to fill out multiple k1 forms on TT. However, on my part 3, box 1, it is a 0. On box 2, it is an actual number (-4000). Do I still have to do multiple k1 forms, including the one for box 1 where is has a zero? Because I have interest income in box 5, when I entered the k1 for box 2, i'm getting taxed twice on that box 5. Thank you. 

[ThomasM125]

You only need to make one K-1 entry since the amount in box 1 is $0 and you don't have an entry in box 3. So, just make the k-1 entry for the box 2 amount and include the rest of the K-1 numbers after box 3 on that entry.

[genius7k]

Thanks for the response. Also, had another question. On the section "we need some information about your 199A income." On my K1 form, it says for "renal income (loss)" the number is -4037. When I put -4037 on turbotax, it doesn't change my federal refund. However, if I just put 4037 (without the negative), it reduces my federal refund. Do I put the negative number, or does turbotax already know it's a negative, and I don't add the negative part? Thanks.

[PatriciaV]

No, you need to enter the number as it appears on your Schedule K-1. The line for "income(loss)" assumes a positive number is income and a negative number is a loss. This flows to the QBI calculation, which may not be affected by a loss (negative amount). That's why it doesn't affect your federal refund.

[genius7k]

Thank you. Also, regarding a separate K1 that I am expecting to receive. There were some distributions that I got from a partial sale of property. I did not file through TT last year (hired a tax preparer, used TT the year before, but I basically started a brand new tax form). How will TT carry over the passive income losses from last year? Or is that built in through the K1 forms? 

[PatriciaV]

When you enter Schedule K-1, look for the page "Describe the Partnership." Check the box for "I have passive activity losses carried over from last year." This choice will allow you to enter the passive losses from your prior year return.