K-1 Entry - different types of income

[BulldogTom]

Prepared a return over the weekend. Client has 2 K-1's from partnerships that he is active in. The K-1's both had ordinary income and rental income. When I ran the check return, ATX came up with a red error that I needed to break the K-1's into two parts for the different kinds of income. I did it, but the Sch E looked funny with four entries when the client only had 2 k-1's.

Is this normal? The amounts ended up correct.

Why is ATX requiring this entry?

Thanks

Tom

Lodi, CA

[grandmabee]

they have done that for several years. It has something to do with how they calculate all the losses and credits etc.

[kcjenkins]

It's always been that way, Tom. Rental income has different rules, so the easy way to deal with it is having two columns, one for each type.

[Randall]

And it's much easier to review the return for individual numbers. You may have multiple lines for each entity, but easier to trace indidividual numbers on the K-1 to the return.