Schedule K-1 partnership foreign income TurboTax error

Forum|Forum|4 years ago
April 9, 2022
2 replies
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In TurboTax Home&Business (installed on Mac), in the review I get this error:

Sch K-1 Wks-Partnerships -- Sch K-1 Partnership Additional Info 1: U.S. source gross income sourced at partner level plus foreign gross income sources at partner level should not be greater that total gross income sourced at partner level.

When I switch to the Form, it shows me "Box 16: Foreign transactions", and a table for "Lines C, I, and J: Partner level foreign income and expense". This table has columns "Total", "U.S. Source", and "Foreign".

Line 1 of this table is "Gross income sourced at partner level" and in this line the Total column is empty, but the U.S. Source and Foreign columns have values.

It seems like this empty Line 1 "Total" cell is the problem, but TurboTax won't let me enter a value. Is this empty value the problem, and how can I fix it?

Thanks...

rogge1722

Employee

The total amount can be entered in Sch K-1 Partnership in the box "Schedule K-3, foreign transactions worksheet " Line C.

randomlongidAuthor

Thanks, I found that and see that I can enter a value, but now my problem is that the TurboTax help says "Line C: Gross income sourced at individual level - enter from Schedule K-3, Part2, Section 1, Line 24, Column F"

... but my K-3 Part2, Section 1, Line 24, Column F is empty.

I guess my K-3 did intend for line 24 column F to be zero because line 55 "Net income (loss) (subtract line 54 from line 24)" shows the entire amount from line 54 column F as a loss.

But, TurboTax doesn't accept that and calls it an error in the Review.

randomlongidAuthor

I'm still stuck on this. On my Schedule K-3, page 4, line 24 Total gross income, Column "(f) Sourced by partner" is empty (zero). This causes a TurboTax error because there are interest and other expenses allocated at the partner level. Lines 42, 49, and 54 Column (f) have positive values and line 55 shows a (loss).

Sample error message:

Sch K-1 Wks-Partnerships (Beldore Capital Fund, LLC) -- Sch K-1 Partnership Additional Info 1: Foreign interest expense allocated at partner level is listed but no foreign source income at individual level has been listed on
the K-1 Additional Information worksheet line 1.

Any ideas how to fix this?

wwsc99

Thank you so much randomlongid. So glad I found your post. I was unable to file it electronically because of an error in "Box 16 Lines C, I, and J : Partnet level foreign income and expense" (K1P addl info 1 page). I had numbers in "total" "interest and other expenses at the partner level" and assumed they were all US Source (K3 didn't say what the source is for "by partner"), but it kept saying there was an error in foreign column when I left it as 0. It was very frustrating. I saw some posts saying Turbo tax suggested to uncheck box 16, so no K3 needed to be fill out. That's not right!

After reading your post, I manually entered zero on schedule K-3 line C "Gross income sourced at partner level" and then went back to the K1P addl info 1 page, and entered zeros in "Gross income sourced at partner level". Then the error was gone.

Thank you again for your post, otherwise I wouldn't be able to make the deadline.