In short
Schedule K-1 reports each owner's share of a pass-through entity's income, deductions and credits: from a partnership's Form 1065, an S corporation's Form 1120-S, or a trust's or estate's Form 1041.
Key takeaways
- Owners report their share on their own returns whether or not they received any cash.
- Separately stated items, such as capital gains and charitable contributions, keep their character.
- Partnership and S corporation returns for calendar-year entities are due March 15.
Where it's tested
REG: Partnership Taxation — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Which item must be separately stated on a partnership's Schedule K-1 rather than included in ordinary business income?