My take on the code Z amounts is that the Ordinary Loss pertains to Box 1; the Rental Income and the Unadjusted Basis pertain to Box 2. Amounts in boxes 1 through 3 need to be divided into 3 separate K-1s with their accompanying amounts (as referenced above) separated per K-1. Perhaps if you segregate everything as discussed in this paragraph, the net income will only record once?
The Box 20 A will be reflected in Box 5. Sometimes it is more than Box 5 if there is non-interest investment income. If there was only interest income, Box 5 and Box 20A should be equal. Here again you would need to determine which of Box 1 through 3 that Box 20A pertains to and ONLY report it on that specific K-1 (Ordinary Business [Box 1], Net Rental Real Estate [Box 2], or Other Net Rental [Box 3]).
I would prefer if the tax pros would get back to you for their take on this topic, as well as my aforementioned question. But until that time, this (above) is what I do.
