Hi, I;ve been filing 1065 for some 20 rentals using TT for many years.
The point / benefit of moving your rentals off your 1040 (sched E) up to a multi member LLC (1065) is to reduce the audit risk at th0 1040 level, and have the liability and management benefits of the LLC.
The end result of a 1065 --> k-1 --> 1040 is that there is no longer Sched E's on your 1040. The depreciation, income (net of expenses and depreciation) is all up in the 1065. The kk-1 transfers into the 1040 the net of the numbers.
In your 1040 find the area where you enter business income, there/s a place to manually enter any/all kk-1s. TT does not automatically import the k-1 into the 1040. All k-1 entry is manual.
Your 1040 taxes due will reflect the net of all your sources of income.
When you file your 1040 attach all your k-1s and w2s etc.
As a past software developer, TT could be alot smarter about these things. But TT business has never advanced beyond a fancy form editor with minimal logic and helps. you really have to now tax code at the 1065 level especially; 179, bonus 179, de--minimus, what numbers from your books go into cost basis, etc.
A good read is biggerpockets.com book; advanced real estate taxes,, or similar title. Buy the newest version. Buy them all i did, reading about real estate tax code is a HUGE help when using TT, IMHO its essential.
