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K1 form rent income

Forum|Forum|7 years ago
June 5, 2019
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k1 form, program will not allow me to put income on box 2 for rental income. There is active participation. There is also regular business income in box 1. The program says to remove this number. But it is income to the Sub S K1 company. If I remove it II understate my income.

TurboTax Deluxe Windows

Best answer by HelenaC

When one K-1 has two different sources of income, you have to create two K-1's.

Add a K-1 with only the Box 1 income.

This income is probably interest income and needs to be reported as ordinary income.
Enter Part I and Part II information.
Do not check off any other boxes on the Check Boxes That Have an Amount. Leave these blank.

Add another K-1 with Box 2 income.

This income reports your rental activity.
Enter Part I and Part II information.
Check off all the boxes that have amounts on your K-1 on the Check Boxes That Have an Amount.

Related Information:

H

HelenaCAnswer

Employee

When one K-1 has two different sources of income, you have to create two K-1's.

Add a K-1 with only the Box 1 income.

This income is probably interest income and needs to be reported as ordinary income.
Enter Part I and Part II information.
Do not check off any other boxes on the Check Boxes That Have an Amount. Leave these blank.

Add another K-1 with Box 2 income.

This income reports your rental activity.
Enter Part I and Part II information.
Check off all the boxes that have amounts on your K-1 on the Check Boxes That Have an Amount.

Related Information: