Hi
I need to split my K-1 into 8 Turbotax K-1 entries. Note, I was told I need to split my single received K-1 into 8 turbax entered K-1s because Box 20 code Z data is split into a main entity and 7 pass through entities, and also I have Box 1 and Box 2 information.
A question during the data entry comes up (each time for each of the K-1s entered) (see below screenshot):
For the "Description" do I need to enter ALL 8 Combined Businesses every time (for all 8 Turbotax K-1s) or only enter the single sub-business that I am entering?
More information may help resolve your issue. For example, are you answering "yes" to a question about combining ("aggregate") this business with other QBI businesses?
Even though you are entering separate K-1s, this is still "one business" for QBI purposes, even though it receives QBI from several passthrough entities, so all these K-1s are not being "combined" or "aggregated" in the IRS QBI "sense" of the word.
Also, note that during the first part of the K-1 entry, all the separate K-1s use the name, address, and EIN of the "main" partnership shown in Part I and Part II of the K-1 you actually received. For Part II, I recommend that the information through Line I (India) be entered, and the appropriate at-risk answer under Line K. Don't put the partner percentages or the partner capital account amounts on the additional K-1s.
When you enter each K-1, you'll encounter the question "Is the business that generated the Section 199-A income a separate business owned by the partnership?" screen, TurboTax is asking if the Section 199-A income was passed through to the partnership sending you the K-1 by another partnership, S-Corp, or trust; versus being generated by the business operations of the partnership that sent you the K-1. So, on one of the K-1s you enter you will answer that it is from the "main" partnership, and on the others you will enter that it is from the pass-through entity. TurboTax will ask for the name and EIN of each pass-through entity.
This was helpful, but I still have a question and a problem related to splitting my k1 into multiple k1's.
The received k1 has all of the income combined. I assume I should only report the income from the main company and not the pass-through income for the main k1 entry in Turbotax, since we are reporting the pass-through incomes in separate k1 entries. And the same with all the other boxes (e.g. 4 - 20). Correct?
When it asks me the combined question, only 4 of my k1's show up in the list and not the one that it should be combined with. Is this a bug in TurboTax 2020? Is there a way I can make the "main" k1 of the split show up or manually work around this?
Thanks (hoping to finish up my taxes before my extension expires)!