Schedule K-1 Error in Turbotax?

Forum|Forum|3 years ago
April 11, 2022
1 reply
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In Part III of K1

Check Type of Activity Reported on this K1

(I check) Multiple Type of Activities (Can only check off one box)

My K1 Has

1) Business

2) Net Rental Real Estate (Loss)

BUT on review Turbotax asks me to delete the $ Loss in box 2 for Net Real Estate Rental Loss.

Won't let me file without?

HELP

Thanks Steve

Best answer by nexchap

You have to create 2 K-1s within TurboTax for this partnership. You report box 1 on one of them, and report box 2 on the second.

All the other boxes on the K-1 need to be split between the two (not entered twice). Options are to actually split each entry based on how it contributed to box 1 vs box 2. Or, if one of the two entries dwarfs the other, you could enter all the other values on that K-1 and leave everything off the other.

nexchapAnswer

You have to create 2 K-1s within TurboTax for this partnership. You report box 1 on one of them, and report box 2 on the second.

**Say "Thanks" by clicking the thumb icon in a post**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user. Use any advice accordingly!

Kozyt

This is a bunch of BS. Turbo Tax has known about this error for years and refuses to correct it. This is the last year I will ever use TT.

nexchap

@Kozyt What error? Here's an example of why TT can't split a K-1 automatically, or report everything on a single K-1:

Line 1 is an Ordinary business loss of -2000
Line 2 is rental income of $500
Line 10 is a gain of $1000

How should line 10 be allocated? Does it apply to the Ordinary Business? If so, $1000 of those losses would be released and $1000 suspended. Or does it apply to the rental side? Then, all $2000 of the line 1 losses are suspended.

This is why the values need to be split, and the split can't be done by a computer's formula.

**Say "Thanks" by clicking the thumb icon in a post**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user. Use any advice accordingly!