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Form 1041 for Trust, K-1 Income, How to Enter Both Box 1 (Ordinary Business) AND Box 2 (Net Rental Real Estate) Income

Forum|Forum|3 years ago
December 5, 2022
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I need help. Experimenting with TurboTax Business 2022 (downloaded) for a Trust Form 1041. Trying to input income data from a K-1 to be received by the Trust. This K-1 has BOTH Box 1 (ordinary business income) and Box 2 (net rental real estate income) to be entered into TurboTax. It seems like I can enter either Box 1 info OR Box 2 info, but NOT both. I suppose I can separately enter Box 1 income as the first received K-1 and then enter Box 2 income AS IF received from a second K-1, but that seems kludgy. Any more elegant solutions?

TurboTax Business Windows

Best answer by Anonymous_

@lzedatTT wrote:

......I suppose I can separately enter Box 1 income as the first received K-1 and then enter Box 2 income AS IF received from a second K-1, but that seems kludgy. Any more elegant solutions?

Not really. The method you suggested is the one that needs to be used by the TurboTax program.

Even if you try to enter both income items on one K-1 in Forms Mode, the program will throw a flag.

VolvoGirl

Employee

I think that's the way to do it. Enter it as separate K-1.

M

Mike9241

kludgy is the only way to go in Turbotax.

A

Anonymous_Answer

Employee

@lzedatTT wrote:

......I suppose I can separately enter Box 1 income as the first received K-1 and then enter Box 2 income AS IF received from a second K-1, but that seems kludgy. Any more elegant solutions?

Not really. The method you suggested is the one that needs to be used by the TurboTax program.

Even if you try to enter both income items on one K-1 in Forms Mode, the program will throw a flag.

L

lzedatTTAuthor

Yes - that was the response from TurboTax when I tried to enter both Box 1&2 income using the 'Forms' mode entry method. I suppose I will accept the inevitable, thanks.

Critter-3

OK ... if you get a K-1 form with box 1 & box 2 entries then in the TT system you will enter the K-1 twice ... on the first form you will enter everything EXCEPT box 2 on one form and ONLY box 2 in the second form entry. The program will automatically marry them together.