K-1 reports amounts in more than one of the boxes 1, 2, and 3

Forum|Forum|2 years ago
April 9, 2024
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This K-1 reports amounts in more than one of the boxes 1, 2, and 3, it says I have to enter the business activies on one K-1 and the real estate rental on another K-1.

I have "1 Ordinary income" and "3 Rental income"

From my understanding I fill out everything in the K-1 with "1 Ordinary income" and then do another K-1 entry for "3 Rental income" but only enter the information listed in "3 Rental income"

When I skip clicking the boxes on "3 Rental Income" I get this message...

Does your K-1 have a code V in Box 17?

We're just double-checking to make sure you don't miss out on a potentially valuable qualified business income (QBI) deduction. Since your K-1 reports income that's often eligible for this deduction, you should double-check Box 17 for a code V.

Should I be entering Box 17 again as it is suggesting for "3 Rental Income" or would it be covered with the Box 17 "1 Ordinary income"

Thank you!

TurboTax Self Employed Online

ThomasM125

The code V in box 17 refers to qualified business income (QBI). The total of your QBI is multiplied by 20% and sometimes adjusted by other items of income and deduction listed on your tax return to arrive at the QBI deduction. Either of the incomes reported in box 1 or 3 could be QBI. If you look at the supplemental information reported with the K-1 schedule it may tell you which income the QBI belongs to. It shouldn't matter which one you apply it to as far as getting the deduction is concerned, just make sure the amount entered for code V in box 17 isn't more than the income reported on that schedule K-1 entry, as that wouldn't be possible.

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