


trade or business, rental real estate, or other rentals), or there are multiple rental activities and at least one of the activities is subject to the recharacterization rules (the property type is either 5 (Self-rental) or 7 (Land)), use a separate K-1 worksheet for each activity. Similarly, if your Schedule K-1 shows both passive and nonpassive activities, or it shows more than one type of activity, (i.e. If you have both types of QBI on your K-1 (generated by the partnership that sent you the K-1 and passed through from another business to the partnership that sent you the K-1) you need to "split" that K-1 into two separate K-1s for entry into TurboTax: one K-1 for the QBI generated by the partnership that sent you the K-1, separate K-1s for the QBI passed through to that partnership by the other business.

You will need to do this with an additional K-1 entered into TurboTax for each of the 12 businesses that reported Section 199A amounts passed through to your partnership. Notice that when you indicate the QBI comes from another business, you'll get additional questions, including whether the pass-through entity is a PTP, and on the next screen the name and EIN of the business that passed through the income to the partnership that sent you the K-1. On that "Is the business that generated the Section 199-A income a separate business owned by the partnership?" screen, TurboTax is asking if the Section 199-A income was passed through to the partnership sending you the K-1 by another partnership, S-Corp, or trust versus being generated by the business operations of the partnership that sent you the K-1. If the single Form 1065 Schedule K-1 you received reports 12 businesses on the Section 199A Statement or STMT associated with box 20 code Z, you'll need to indicate a choice on the "Is the business that generated the Section 199-A income a separate business owned by the partnership?".
