K-1 with both business income and net rental income

Forum|Forum|1 year ago
March 12, 2025
1 reply
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I have entered both rental real estate income and business income in 2 separate forms on Turbotax. I have done it exactly as Turbotax requested per the community support. In the real estate K-1 on Turbotax, the rental income box is red (error) and Turbotax says this schedule is not done. But I can't figure out why the error exists. How do I make the error go away?

Best answer by ronsper

You may be able to resolve this using Forms Mode in TurboTax for Desktop.

Open your return and click the Forms icon in the TurboTax header.
In the list of Forms in My Return on the left, scroll down and look for the form with a red exclamation mark.
Click the form name to open it in the large window.
Click the Errors icon above the list of forms to open a message box below the open form.
See if you can revise your entries to resolve the form error (make the red exclamation mark go away).
Click Step-by-Step in the header to return to the main screens.
Now run SmartCheck again to see if the error has been resolved.

If you're using TurboTax Online, you may need to switch to Desktop. See this post for more help: How do I switch from TurboTax Online to the TurboTax software?

I finally figured out why I was getting an error message. For the K-1 with rental income, in Part III, I checked the rental real estate box and I put 0 in line 1(which is ordinary business income) and I put the real loss amount in line 2. And both lines gave me an error message. Instead of putting 0 in line 1 I erased and made it blank. Once I made it blank, both error messages went away. So you can't have any entry in line 1. If you do you will get an error message.

Mike9241

you did enter only line 1 on one k-1 and only line 2 on the second k-1?

ronsperAuthor

yes, in the first k-1 I did line 1 plus all of the other lines with information. In the 2nd k-1 I just put the amount in Line 2 and didn't fill out any other lines except for the info in part 1 (Name, address, etc). The name I gave it ended with "(net real estate income)"

ronsperAuthor

So do we have a solution to why I am getting an error message from Turbotax? I had the same situation last year and resolved it the same way without an error message. But this year, with the same solution I get a different resolution---which is an error message from Turbotax.