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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 and Expenses of a Partnership or an S Corporation. Rental real estate income can be reported on Form 1065 U.S. Return of Partnership Income, page 1, Line 4 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:

  1. From your TaxAct 1065 return, click K-1 Wizard.
  2. Click Continue, then click Edit next to the first partner for whom you paid guaranteed payments.
  3. Click Quick Entry, scroll down to Part III "Partner's Share of Current Year Income, Deductions, Credits, and Other Items," select Report guaranteed payments on Form 8825, Line 15 in Box 4 "Guaranteed payments", then click Save & Close.

Note. If you reported guaranteed payments on Form 1065, Page 1, Line 10, this checkbox will remove them from that section.

Per IRS Instructions for Form 1065, U.S. Return of Partnership Income, on page 13:

Reporting of rental activities. In reporting the partnership's income or losses and credits from rental activities, the partnership must separately report rental real estate activities and rental activities other than rental real estate activities.

See the instructions for Line 3. Other Net Rental Income (Loss), later, for reporting other net rental income (loss) other than rental real estate.

On page 32:

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.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.


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