TT will not allow me to input values on Schedule K-1 (Form 1120S) for Subchapter S corps on both line 1 (ordinary business income or loss) and line 2 (net rental real estate income or loss).
I suspect this is a factually rare situation; but given the nature of the business, I am not surprised that it has both ordinary income and some small amount of rental income.
The workaround i suspect is to generate 2 K-1s, but the CPA for the business (its a joint venture with a Fortune 500 company) only generated 1 K-1, with no allocations between the ordinary business income and the rental income.
I'm not sure this qualifies as a ' bug '; it probably is more likely that TT follows an ivory tower tax accounting professor's theory rather than deal with what real world CPAs send out. The Subchapter S's tax return is indifferent to such issues.
Any thoughts?
-dllapides