If you want to associate the rental activity with guaranteed payments, the rental real estate income must be reported on Form 8825. Rental real estate income can be reported on Form 1065, page 1, line 3 or Form 8825, Line 15 depending on how it is received. Guaranteed payments relating to this income will be reported based on whether the income is reported on Form 1065 or on Form 8825.
To report on Form 8825
, Rental Real Estate Income and Expenses of a Partnership or an S Corporation:
- From your TaxAct 1065 return, click K-1 Wizard
- Click Continue, and then click Review next to the first partner for whom you paid guaranteed payments
- Click Quick Entry to open the Quick Entry window. Scroll down to Part III, and in box 4, check the box Report guaranteed payments on Form 8825, Line 15.
If you reported guaranteed payments on Form 1065
, Page 1, Line 10, this checkbox will remove them from that section.
Per the Instructions for Form 1065
, U.S. Return of Partnership Income
, Reporting of Rental Activities:Page 13
Report rental real estate activity income (loss) on Form 8825
, Rental Real Estate Income and Expenses of a Partnership or an S Corporation, and line 2 of Schedule K and in box 2 of Schedule K-1, rather than on page 1 of Form 1065. Report credits related to rental real estate activities on lines 15c and 15d of Schedule K (box 15, codes E and F, of Schedule K-1) and low-income housing credits on lines 15a and 15b of Schedule K (box 15, codes A–D of Schedule K-1).
See the instructions for Line 3. Other Net Rental Income (Loss)
, later, for reporting other net rental income (loss) other than rental real estate.Page 31
:Line 3. Other Net Rental Income (Loss)
Enter on line 3a gross income from rental activities other than those reported on Form 8825. Include on line 3a gain (loss) from line 17 of Form 4797 that is attributable to the sale, exchange, or involuntary conversion of an asset used in a rental activity other than a rental real estate activity.