Question

I have a K-1 form 1065 that says do not use Part III, so is there a way to only enter Part III information from the supplemental form and tie it to Parts I & II?

Forum|Forum|7 years ago
June 4, 2019
5 replies
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TurboTax Premier Windows

A

AmandaR1

Employee

Where does it say "do not use Part III"?

L

lcooglerAuthor

The K-1 from ETP has a bold statement printed over Part III that states "Do Not Use Part III Information -- See 2016 Supplemental K-1 Information Statement". On the Supplemental K-1 statement it lists the Part III responses 1 thru 20 for four individual entities: ETP, SXL, SUN, and PTXP. I presume ETP has investments in the other 3 entities and I should report those separately, but how do I do this in TurboTax Premier? Or am I just not understanding and should use the numbers on the Part III that says don't use these?

A

AjayShahnc

I also received similar 1065 K1 from Energy Transfer LP (ET) , I got suplemental Part III with 3 companies with their corresponding FEIN.

Q1: Do Have to file three K1 individuallyfor each companies with detail of Part III reported in supllemental statement?

Q2: I have details of part I to file it separeately. How fo I file Part II. Do I fill Part II for ET with the information in 1065 K1 for ET and for remainining 2 companies leave J, K and L Blank?

Thanks in advance.

DaveF1006

Since these are companies the partnership does business with, I would advise reporting these all on one K1. You would report these separately if you were claiming a Qualified Business Income deduction but these codes only deal with interest and 179 deductions so it is permissible to report this on the partnership K1.

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A

AmandaR1

Employee

No, I'd say you're correct! You should enter them separately because the gain/losses need to be tracked separately. This is less common, but it's how they should be entered; enter it as 4 schedule K-1s and include the entity name.

L

lcooglerAuthor

OK, thank you so much for your help with this issue.

A

AmandaR1

Employee

You should have no problem entering all sections from your schedule K-1. Part III is the only section that reports the pass through amounts for the year and this should be entered all at once, with the about the partnership/partner info from parts I and II. Based on this info, let me know your follow up questions and more info about why you're trying to enter Part III Partner's share of current year income, deductions, credits and other items, separately.