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

Disclaimer: ProTaxPro.com reserves the right to modify this information at anytime. This is not tax advice. The intended purpose is to help our users navigate the program.

Although we do our best to maintain this information and keep it current, tax laws are constantly changing, supported forms/documentation can change at anytime. We can not guarantee the that the information is current. You will always find the most up-to-date information on the IRS website or applicable State website.

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.

Limitations on Losses, Deductions, and Credits:

The specific order that must be followed is:

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

2) The Basis Rules

3) At-Risk Limitations: Generally, the Partnership will attach statement to Schedule K-1 listing amounts not subject to the At-Risk Limitations.

4) 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.

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.

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