Why is K1 income allocated to Interest Income in 1040?

[renee8]

After importing K1/1065 info on a client's 1040, the income is allocated under Interest Income instead of Partner income.  Is this a know issue? If so, is there a work around?  This didn't happen on last year's return, the income from a Partnership LLC was allocated under "Rent, royalty, partnership, SCorp, trust -- not interest income.

Thanks in advance!

Renee

[George4Tacks]

What line numbers are on the K-1? 

Line 5 goes on the Schedule B.

[abctax55]

Was there interest income last year?

The nature of the income flows from the K-1 to the F.1040 (interest, dividends, cap gains, etc).

[renee8]

No, that's what's confusing me, this is the 2nd year of prepared a 1065 for them and none of the business partnership income, last year or this year, is from interest.

[renee8]

It's on line 2a after importing into the 1040.

[sjrcpa]

If it's wrong, fix it manually.

[abctax55]

Importing the K-1 is just a tool, it isn't perfect.  You need to verify all numbers are correct (especially State ##'s if applicable) and fix (as Susan said) if they aren't.

[renee8]

Yeah, that is what I was trying to avoid. 😞

[sjrcpa]

It takes what - 2 minutes?

And you've waited 3 days.

Just sayin'.

[George4Tacks]

Curious George wants to know.

Import from a pdf K-1?

Import from a 1065 you created with ProConnect Tax Online?