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I have an error during review where it states my K1 has Foreign interest expense allocated at partner level but no foreign source income is listed at the individual level

Forum|Forum|1 year ago
September 14, 2024
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I went back and answered that I did not have a K3 based on the lack of foreign income and that got me through the initial check. However, now it won't let me file because of this error.

TurboTax Online

Best answer by pk12_2

@eberulf , neither form 1065 nor schedule-K-1 requires declaration of specific foreign income -- each shows the foreign taxes paid that comply with section 901/903 of IRC. So the only way for you to get the foreign income which resulted in the foreign taxes paid ( and available to you as foreign tax credit ) is really to call the partnership's accounting and get the amount of foreign in come ( allocable to your share/shares ) and also the country /countries/RIC etc. TubroTax will require these bits of info for purposes of form 1116. I don't understand really why this is not provided automatically.

Note however that since this is passive foreign income, you may be able to use the safe harbor ( US$300 per filer ) and thus avoid the need for form 1116. Does your line 21 meet or is around that amount ?

Is there more I can do for you ?

A

Anonymous_

Employee

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pk12_2Answer

Employee

@eberulf , neither form 1065 nor schedule-K-1 requires declaration of specific foreign income -- each shows the foreign taxes paid that comply with section 901/903 of IRC. So the only way for you to get the foreign income which resulted in the foreign taxes paid ( and available to you as foreign tax credit ) is really to call the partnership's accounting and get the amount of foreign in come ( allocable to your share/shares ) and also the country /countries/RIC etc. TubroTax will require these bits of info for purposes of form 1116. I don't understand really why this is not provided automatically.

Note however that since this is passive foreign income, you may be able to use the safe harbor ( US$300 per filer ) and thus avoid the need for form 1116. Does your line 21 meet or is around that amount ?

Is there more I can do for you ?