r/tax•
eigentau

How to split K1 with both Box 1 and 2?

Unsolved

This is the first year that I'm doing my taxes by myself (via FreeTaxUSA). I have a W2 and a few 1099's which are all easy to handle. However, I also have a K1 (Form 1065) from a partnership that owned/rented out a commercial property. We sold the property and dissolved the partnership in 2025, so next year's taxes should be simpler.

The K1 has values in boxes 1 (negative) and 2, as well as 9c, 10, 17, 19, and 20. Since boxes 1 and 2 are filled, FreeTaxUSA prompts me to split this K1 into two separate K1's, one for the box 1 income, and another for the box 2 income. How should I split up the other boxes between the two K1's? This is confusing to me since the point of the partnership was real estate, so the distinction between business income and real estate income seems fuzzy.

Any help here? Thanks in advance for the information.

Posted Mar 6, 2026, 9:47 PM UTC

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