TT Premier 2023 refuses to accept partnership K-1 data

Forum|Forum|2 years ago
December 13, 2023
2 replies
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Our new LLC / partnership has rental income and also some expenses not attributable to a specific rental property; things like accounting costs, bookkeeping costs, registered agent fees, state registration fees, some office expenses etc. etc.

TT Business 2023 gladly accepts all this correct info into the 1065, and generates K-1 where it lists the generic costs / expenses in box 1 [Ordinary business income (loss)], and the rental income in box 2 [Net rental estate income (loss)].

TT Premier 2023 is terribly upset about these K-1 boxes. Symptoms include:

- It wants me to select a "Type of Activity Reported on this Schedule K-1", the options are "Business", "Rental Real Estate", "Other Rental Activities", "Other (investment club, etc.)", and "Multiple types of activities".

Problem #1 = the K-1 printed by TT Business 2023 does not indicate this.

- Selecting the logical "Rental Real estate" checkbox, I get

Problem #2 = TT Premier 2023 triggers errors if I enter any data in box 1, tells me "Box 1 should not have any amount, checked participation box is for box 2". It does not let me copy info from the partnership's K-1.

- Leaving all selection checkboxes blank is no better. TT Premier 2023 still does not let me enter the box 1 values.

Am I missing something simple here, if so what?

Is this an incorrect behavior by TT Premier 2023 in its current version?

Otherwise, how can I enter the box 1 info from the partnership's K-1 into my 1040's K-1 form?

Best answer by Mike9241

This has been a constant issue with Turbotax so I don't know if it will be fixed for 2023. when you have amounts on multiple lines 1, 2 and/or 3, Turbotax requires you to enter each line on a separate k-1.

I would say that for general expenses in your real estate partnership, you allocate those expenses on the rental schedules. Consistently use any logical method. such as an equal portion to each, based on time spent on each, or revenue. I don't believe reporting these expenses on page 1 of the 1065 is proper.

DoninGA

Employee

The Schedule K-1 (Form 1065) for tax year 2023 has not yet been finalized in TurboTax.

It is scheduled to be available on 02/14/2024

Go to this TurboTax website for forms availability - https://form-status.app.intuit.com/tax-forms-availability/formsavailability?albRedirect=true&product=Turbotax_online&bu=cg

aysorefAuthor

No text available

Willerj2

This is very frustrating that the Schedule K-1 (Form 1065) is still not available. It’s the middle of February and I have been ready to file for weeks. If this form does not become available ASAP I will never use TurboTax again. I have friends who have used other online services and are done. Will begin transferring to H&R Block if not done ASAP.

Mike9241Answer

aysorefAuthor

@Mike9241 Indeed, this is what I find. A call to Turbotax help desk was a waste of time. The rep told me that I should not enter data in the form itself, that Turbotax is not meant to be used like that and instead I should use the step-by-step interview, which will populate everything correctly.

Nonsense. The 2023 interview is not available yet. So just for grins, I went back to my 2022 Turbotax Premier version [by now complete, correct, stable software]. Followed the interview, which told me exactly what you said i.e. create a separate K-1 form for each line 1, 2 or 3. This means creating two (2) K-1's for each partner. Clearly not the original intent.

Mike9241

@aysoref here's another issue you may create by potting general expenses on page 1 of the 1065. These would be passive losses. However, they are not identified as being related to rental real estate. Thus these losses would be suspended until there is passive income. As I have stated in the previous post, these are related to the rental activities of the partnership and should be reflected as such on the 1065 not page 1.