socfor.blogg.se

If the income (loss) is entered as Passive Income/Loss, it will carry to Worksheet 3 of Form 8582 – Passive Activity Loss Limitations, where any losses may be limited and any income may be offset by other passive losses that the taxpayer has. If the income (loss) is entered as Non-Passive Income/Loss it will carry to the Schedule E (Form 1040), Line 28 column (k) for income or Line 28 column (i) for any loss. See: Publication 925 - Passive Activity and At-Risk Rules. Several factors determine whether the income is considered Passive or Non-Passive, including whether the taxpayer was a general or limited partner in the entity and their actual participation in the underlying partnership. Line 1 - Ordinary Income/Loss from Trade or Business Activities - Ordinary business income (loss) reported in Box 1 of the K-1 is entered as either Non-Passive Income/Loss or as Passive Income/Loss. See: KB Article on Adjusted Basis Worksheet and Publication 925 - Passive Activity and At-Risk Rules. These amounts do not take into consideration the following limitations: the adjusted basis of the partnership interest the amount for which the taxpayer is at risk or the passive activity limitations. The amounts shown in boxes 1 through 11 reflect the taxpayer's share of income items from the partnership. A description of the income items contained in boxes 1 through 11, including each of the Codes for Other Income (Loss) that can be entered in Box 11 can be found below. The K-1 1065 Edit Screen in the tax program has an entry for each box found on the Schedule K-1 (Form 1065) that the taxpayer received. If the initial K-1 entry was previously keyed in, double click on the entry in the K-1's pick list.Īfter entering all of the information required on the K-1 Heading Information screen, select ‘OK’. The K-1 1065 Edit Screen has two distinct sections entitled ‘Heading Information’ and ‘Income, Deductions, Credits, and Other Items.’

For additional information regarding the requirements for Schedule K-1 (Form 1065), see: Partner's Instructions for Schedule K-1 (Form 1065). This article focuses solely on the entry of the Income (or Loss) items which are found on Lines 1 through 11 of the Schedule K-1 (Form 1065) Partner's Share of Income, Deductions, Credits, etc.