foxtaxes75
Returning Member

Do I file state K-1 or not?

I have invested in a private equity real estate LLC, and I can't figure out if I need to enter the state K-1 on Turbotax or not.

 

The investment LLC did give me a regular K-1 and state K-1's, but on the paperwork the LLC wrote, "Activity is sourced to FL, GA, MD, NC, SC, TN, VA ,and WA. See state K-1's provided. FL and other state K-1's are not applicable for individual investors." 

 

It's that last sentence that is confusing me. I invested as an individual investor - not part of a trust or business. So does that mean the state K-1 that the LLC provided me should not be entered on my TurboTax state return?

 

If I am supposed to file state K-1's, do I have to file tax returns for other states? The K-1 says, "Composite returns are being filed in GA, MD, SC, and VA." That still leaves NC, TN, and WA (one of which I live in).

 

I tried entering the state K-1 information for my state and it did increase my state tax liability. 

 

Any help in figuring this out is appreciated!

foxtaxes75
Returning Member

Investors and rental owners

Anyone have any insight on this?