Question

Separating business and rental on 1065 K-1?

Forum|Forum|6 years ago
January 6, 2020
2 replies
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I have a 1065 K-1 with amounts in box 1 and 2. Turbotax requires me to separate which amounts on the K-1 are for business income and rental real estate and then create *two* K-1 entries in Turbotax from this one K-1. I wish Turbotax would ask more questions about the entries and figure this out in the program rather than punting it down to me. But anyway...

I have entries in boxes 1,2,5,13,17,18,19,20. Codes are:

Box 13- A, K, W* (property taxes)

Box 17- A

Box 18- C

Box 19- A

Box 20- A, AB, AD, Z.

So what amounts go on the business K-1 and the rental K-1?

Thanks,

TurboTax Premier Windows

Critter

Employee

Here we go ... easiest way is to create 2 K-1 forms ... on the first enter EVERYTHING EXCEPT box 2 and on the other enter ONLY box 2.

A

avjuniorAuthor

Thanks for the quick reply! I have to ask however if it's as simple as this why doesn't Turbotax just do it in the program?

Critter

Employee

Even the professional programs don't do it ... it is not a common situation.

R

rodderrs

if have entries in box 1 and box 2, TT suggests creating two entries, where one version is just Box 2 and 13, and the other is Box 1 and all other boxes. This leaves unexplained what to do with entries in box 20z where one of the items is often rental income. (note that rental income goes in box 2 also). So it seems illogical to have a separate version of the k1 in TT for Box 2 rental income and then have box 20 reported on the OTHER version of the k1 in TT. Would seem more logical to instruct one version of k1 entries for Box 2 and Box 20. THIS WHOLE COMPLICATION IS CREATED BECAUSE TT CANNOT HANDLE A k1 that has entries in box 1 and box 2. Can't TT just fix that bug?

Critter

Employee

Ok ... it is just this simple ...

On the first K-1 entry screen ONLY enter box 2 .... and on the second screen enter everything EXCEPT box 2 ... the program will marry them together automatically.