Okay, you're just taking the position that the rentals constitute non-business income. My client has UT royalties, but they're in the O&G industry, so are stuck with apportionment.

I can get an okay presentation on page 1 of the UT K-1 for non-resident partners, albeit with an erroneous number as non-UT non-business net income "included in reported Schedule K amounts." And the Schedule N looks good, which is really what I aim for for the non-resident partners. The K-1 itself often doesn't agree with the Schedule N, due to line-item rounding, and there are so many pieces that I usually just memo a "Your total UT-source income, net of deductions and rounding adjustments, is $X," where X matches the Schedule N.

For resident partners, the K-1 instructions say that you use the Federal K-1 amounts, not the UT-source amounts for Line 2, and then the non-UT non-business net income included in reported Schedule K amounts that gets memo'd on page 2 of the K-1 is the correct subtraction to arrive at the UT-source income. At least on my dummy return, which is pretty simple. Again, that's in the 2019 program, so it's entirely possible that there's a bug in 2020.

Schedule H does not preclude UT e-file. If you're looking at 2020 forms, it may not be available for e-file yet, and choosing to paper file may be the lesser evil. But my UT partnership e-files just fine every year with Schedule H.