Question

Depreciation Allocation Federal K-1 versus Pennsylvania RK-1

Forum|Forum|3 years ago
February 14, 2023
1 reply
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Hello,

I am an executor filing a "final" return for a decedent's estate. All distributions have been made, which includes taxable income from a rental property. All depreciation has been distributed to the beneficiaries and is properly listed in box 9 of Federal K-1. TurboTax automatically reduced the Estate's portion of depreciation to zero. No issues so far.

The problem? The Pennsylvania RK-1 transfers rental income values from the Estate (1041) return. How do I get the depreciation deducted off the value in box 6 of the RK-1?

TurboTax Business Windows

A

AbrahamT

I just did it on my end and it went through. See

but not here Rk-1 line 6

It's off on my end seamlessly.

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J

Jayson2Author

Apologies, I wasn't perfectly clear. I want the depreciation to be taken into account on Pennsylvania RK-1 so it can be deducted. Otherwise, the beneficiary is overpaying for rental income. In your example, suppose the rental income (paid by tenants) was $2000. Deducting $1100 depreciation, I believe box 6 of RK-1 should show $900. In my hypothetical case, box 6 shows $2000. This means the beneficiary is paying taxes on the depreciation (3.07% on $1100) when he shouldn't be.