schedule k-1
DESCRIPTION
Schedule K-1. Pub 4491 – Pg 123. Schedule K-1. Reports taxpayer’s share of income, other distributions, deductions, and credits from Estates and Trusts (Form 1041) Domestic Partnerships (Form 1065) S Corporations (Form 1120S) K-1s for Foreign Partnerships (Form 8865) are out of scope. - PowerPoint PPT PresentationTRANSCRIPT
![Page 1: Schedule K-1](https://reader035.vdocument.in/reader035/viewer/2022062517/56812cd3550346895d919046/html5/thumbnails/1.jpg)
TAX-AIDE
TAX-AIDE
Schedule K-1
Pub 4491 – Pg 123
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![Page 2: Schedule K-1](https://reader035.vdocument.in/reader035/viewer/2022062517/56812cd3550346895d919046/html5/thumbnails/2.jpg)
TAX-AIDE
Schedule K-1
●Reports taxpayer’s share of income, other distributions, deductions, and credits from Estates and Trusts (Form 1041) Domestic Partnerships (Form 1065) S Corporations (Form 1120S)
●K-1s for Foreign Partnerships (Form 8865) are out of scope
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![Page 3: Schedule K-1](https://reader035.vdocument.in/reader035/viewer/2022062517/56812cd3550346895d919046/html5/thumbnails/3.jpg)
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Intake and Interview
● Look for K-1s
● Verify in scope!
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![Page 4: Schedule K-1](https://reader035.vdocument.in/reader035/viewer/2022062517/56812cd3550346895d919046/html5/thumbnails/4.jpg)
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Schedule K-1
● In-scope K-1s contain ONLY Interest income (taxable and tax-exempt) Dividends (ordinary and qualified) Capital gains or losses (long or short) Royalty Income Foreign Tax paid for passive activities
●Anything else is Out-of-Scope
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![Page 5: Schedule K-1](https://reader035.vdocument.in/reader035/viewer/2022062517/56812cd3550346895d919046/html5/thumbnails/5.jpg)
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Schedule K-1 (Form 1041)
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Note: may have 2012 Form date but be 2013 income for taxpayer.
![Page 6: Schedule K-1](https://reader035.vdocument.in/reader035/viewer/2022062517/56812cd3550346895d919046/html5/thumbnails/6.jpg)
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Schedule K-1 (Form 1120S)
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![Page 7: Schedule K-1](https://reader035.vdocument.in/reader035/viewer/2022062517/56812cd3550346895d919046/html5/thumbnails/7.jpg)
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Schedule K-1 (Form 1065-B)
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![Page 8: Schedule K-1](https://reader035.vdocument.in/reader035/viewer/2022062517/56812cd3550346895d919046/html5/thumbnails/8.jpg)
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K-1 Interest Income
●Also look for exempt interest income
●Box number varies by form
● Look on the back of the form for the code descriptions
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![Page 9: Schedule K-1](https://reader035.vdocument.in/reader035/viewer/2022062517/56812cd3550346895d919046/html5/thumbnails/9.jpg)
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Reporting Income from K-1
●Do NOT use K-1 worksheet Interest or Dividend Stmt – list payer as
[Company] K1 Net Capital Gain/Loss – Sch D Line 5 for
short-term, line 12 for long-term using scratch pad
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Pub 4012, pg D-3
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Reporting Income from K-1
Schedule E for royalties Foreign Tax paid on Form 1116
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Pub 4012, pg D-3
![Page 11: Schedule K-1](https://reader035.vdocument.in/reader035/viewer/2022062517/56812cd3550346895d919046/html5/thumbnails/11.jpg)
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Foreign Tax on K-1
●Box number varies by form
●Must be coded as Passive income
●Will be covered in later lesson
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![Page 12: Schedule K-1](https://reader035.vdocument.in/reader035/viewer/2022062517/56812cd3550346895d919046/html5/thumbnails/12.jpg)
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Quality Review
●Verify in scope
●Verify tax year
●Verify entries On respective worksheets and forms Not on K-1 in TaxWise
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![Page 13: Schedule K-1](https://reader035.vdocument.in/reader035/viewer/2022062517/56812cd3550346895d919046/html5/thumbnails/13.jpg)
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Exit Interview
●Will need to explain if out of scope
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Schedule K-1
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