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Employee
April 18, 2020
Question

k-1 with ordinary business income and rental income - do i have to enter all of the same info the second time through?

  • April 18, 2020
  • 1 reply
  • 0 views

I have a K-1 which has ordinary business income as well as rental income.

TurboTax informs me I have to submit it as two separate K-1.

The second time around, it is asking the same questions as the first time through.

 

Should I be entering the same answers to those questions the second time through?

I'm worried that I will be double taxed.

Should I just enter the amount for the rental income the second time through?

Does TurboTax handle this correctly?

 

Thank you very much!

    1 reply

    Employee
    April 18, 2020

    @skip11_2 wrote:

    Should I just enter the amount for the rental income the second time through?

    Does TurboTax handle this correctly?


    Yes, TurboTax handles this situation correctly and, yes, you should only enter the rental income the second time through that section. For example, enter the business income and all other line items with figures the first time and then enter only the rental income the second time.

    April 9, 2022

    What about all the other lines/codes, Section 199A/QBI etc?

    Do I record it on the K-1 with the ordinary income, the K-1 with the rental income or both?

     

    Also, should I somehow hint to the TurboTax that these 2 K-1s are related?

    April 17, 2022

    Hopefully, the preparer of the K-1 has provided an attachment outlining the breakdown of incomes, expenses and attributes that are listed on the K-1.  The original K-1 and the attachment provided by the preparer of the K-1 may look like this.

     

    Original K-1                                                         Box 1 only                                                           Box 2 only

     

    Box 1     $1,000                   =                             $1,000

    Box 2     $500                      =                                                                                                            $500

    Box 5     $100                      =                             $75                                                                         $25

    Box 6a   $200                      =                             $150                                                                       $50

    Box 6b   $100                      =                             $75                                                                         $25

    W-2 wages $50,000            =                             $25,000                                                                 $25,000

    UBIA $100,000                    =                             $50,000                                                                 $50,000

     

    The partnership should provide section 199A information to compute the qualifying business income deduction for the entity as well as the individual box 1 and box 2 incomes.

     

    You will be making both K-1 entries using the same K-1 EIN number.  This tells the software that the entries are related.

     

    At the screen Choose Type of Activity, click the hyperlink Learn more. The note will say:

     

    If your K-1 shows more than one type of activity, treat each one separately. Enter all business items on one K-1, all real estate rental items on another K-1, and all other rental items on a third K-1.

     

    So there will be one K-1 entry for box 1 income.  Only click on box 1 and the statement "This K-1...".

     

    There will be a second K-1 entry for box 2 income.  Only click on box 2 and the statement "This K-1...".

     

    The other boxes of the K-1 may refer to either box 1 income, box 2 income or a combination.  The preparer of the K-1 may have included attachments or detail which explain how those items break down.  

     

    The preparer of the K-1 may have included qualified business income deduction information in box 20 that refers to box 1, box 2 or both boxes of income.

     

    @qadro

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