Schedule K-1 (Form 1065); Partner's Share of Income, Deductions, & Credits

NOT INSTRUCTIONS

This is a basic overview of the Schedules/Forms our system supports that are used to report information from Schedule K-1.

Please read Schedule K-1 instructions to help determine how the Schedule K-1 (Form 1065) is to be treated.




Things to know in regards to a Schedule K-1, Form 1065:  
  • Schedule K-1 (Form 1065) can have amounts that belong in a multiple different Forms and Schedules.
  • Schedule K-1 (Form 1065) that are complex or require multiple entries in certain Forms/Schedules may not be able to use this software.
  • Elective Notes/Preparer Notes can be added to the return by clicking either the Blue Return Attachments Link or Blue Elective/Preparer Notes Link on the Summary Page. These are submitted with the return.


There are limits to what this system supports, please see the individual Page/Schedule/Form for further information.  Customer Service can only assist with questions on supported forms or locating a specific page. They are not tax preparers, and are unable to give specific instructions on how to report this income.


If Form 8082 Notice of Inconsistent Treatment or Administrative Adjustment Request is required, you will be unable to use this system.




Limitations on Losses, Deductions, and Credits:


The specific order that must be followed is:

  • Other Specific Limitations (ex. Section 179 Expense Deduction).


  • The Basis Rules
  • At-Risk Limitations: Generally, the Partnership will attach statement to Schedule K-1 listing amounts not subject to the At-Risk Limitations.
  • Passive Activity Limitations: Apply to Partners who are Individuals, Estates, Trusts, closely held C Corporations, or Personal Service Corporations and have had a Passive Activity Loss or Credit for the tax year.



Reporting Forms & Schedules


There are different rules regarding the specific tax treatment used for each of the entities (General Partner or LLC Member Manager, Domestic Partner, Limited Partner or other LLC Member, & Foreign Partner, and if a Publicly Traded Partner).

This list does not include specific details on entering information from Schedule K-1. It is a reference to the many Forms & Schedules that may be required, along with a brief description on where it is located. (When no description is present, the Form is listed by name in the Add Forms List.)


Schedule A            Itemized Deductions: Charitable Contributions, Miscellaneous Deductions, Medical Insurance Premiums

Schedule B

 Interest Income & Dividends: Interest Listing Page/Dividend Listing Page or Schedule B                                                                                  (Add Schedule B when total Taxable Interest/Ordinary Dividends are $1,500 or more). 

Schedule D            Net Short or Long-Term Capital Gains, Collectibles (28%) Gain/Loss (Add Sch. D Capital Gains/Losses and/or Sch. D Listing Page)

Schedule D1          Continuations Sheet for Schedule D if you elect not to include your transactions on the electric Short-Term Capital Gain/Loss                                                       or Long-Term Capital Gain/Loss Records (Located within the Return Attachments Link on Summary Page)

Schedule E            Rental Real Estates, Royalties, Partnerships & S-Corporations, Estates & Trusts (Add each section individually, or add entire Sch. E)

Other Income         Cancellation of Debt Income: (Taxable amount: Other Income: Add Additional Income Page including Social Security Benefits Page)

Form 982               Reduction of Tax Attributes to Discharge of Indebtedness (Add Form 982; Nontaxable amount only (Cancellation of Debt income))

Schedule SE          Self-Employment Earnings (Schedule SE automatically populates when required. Add Schedule SE Adjustments for manual entries)

Form 1116              Foreign Transactions

Form 3468             Historic Structure Certificate (Located within the Return Attachments Link on Summary Page)

Form 4136             Credit for Federal Tax Paid on Fuels (Located within the Return Attachments Link on Summary Page)

Form 4562             Depreciation and Amortization (Only accessed from within Schedule C, Schedule E, and Schedule F)

Form 4684             Casualties and Thefts (This form can be added individually, or from within Schedule A)

Form 4797             Sales of Business Property (Part I, Part II, or Part III)

Form 4952             Investment Interest Expense Deduction

Form 5713             International Boycott Report (Located within the Return Attachments Link on Summary Page)

Form 6251             Alternative Minimum Tax (AMT) (It is the users responsibility to complete Form 6521 Alternative Minimum Tax when applicable)

Form 8283             Noncash Charitable Contributions (Located within the Return Attachments Link on Summary Page)

Form 8582             Passive Activity Limitations (Automatically populates when required)

Form 8858             Foreign Disregard Entities (Located within the Return Attachments Link on Summary Page)

Form 8864             Certificate for Biodiesel/Statement of Biodiesel Reseller (Located within the Return Attachments Link on Summary Page)

Form 8873             Extraterritorial Income Exclusion

Form 8903             Domestic Production Activities Deduction

Form 8949             Sales and Other Dispositions of Capital Assets (Located within Schedule D, automatically populates when entries made requiring form)

Form 8960             Net Investment Tax

Form 3800             General Business Credits


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