Partner'S Instructions For Schedule K-1 (Form 1065-B) - Partner'S Share Of Income (Loss) From An Electing Large Partnership (For Partner'S Use Only) - 2014 Page 6
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13passive income on the form or schedule
taxpayer identification number (ITIN), or
commercially reasonable and on
you normally use.
employer identification number (EIN).
substantially the same terms as loans
However, the partnership has reported
involving unrelated persons), the seller of
Example. You have a Schedule E loss
your complete identification number to the
the property, or a person who receives a
of $12,000 (current year losses plus prior
IRS.
fee for the partnership's investment in the
year unallowed losses) and a Schedule D
real property.
gain of $7,200. Report the $7,200 gain on
Publicly Traded
the appropriate line of Schedule D. On
See Pub. 925 for more information on
Partnership (PTP)
Schedule E (Form 1040), line 28, report
qualified nonrecourse financing.
$7,200 of the losses as a passive loss in
If the “publicly traded partnership” box is
Both the partnership and you must
column (f). Carry forward to 2015 the
checked, you are a partner in a publicly
meet the qualified nonrecourse rules on
unallowed loss of $4,800 ($12,000 −
traded partnership (PTP) and must follow
this debt before you can include the
$7,200).
the rules under Publicly traded
amount shown next to “Qualified
If you have unallowed losses from
partnerships discussed above.
nonrecourse financing” in your at-risk
more than one activity of the PTP or from
computation.
Partner's Share of
the same activity of the PTP that must be
reported on different forms, you must
See
Limitations on Losses,
Liabilities
allocate the unallowed losses on a pro
Deductions, and
Credits, earlier, for more
The partnership will show your share of
rata basis to figure the amount allowed
information on the at-risk limitations.
the partnership's nonrecourse liabilities,
from each activity or on each form.
Boxes 1 Through 9
partnership-level qualified nonrecourse
To allocate and keep a record of
financing, and other liabilities as of the end
The amounts shown in boxes 1 through 9
the unallowed losses, use
of the partnership's tax year. If you
TIP
reflect your share of income, loss,
Worksheets 5, 6, and 7 of Form
terminated your interest in the partnership
deductions, credits, etc., from the
8582. List each activity of the PTP in
during the tax year, the amounts should
partnership. These amounts do not take
Worksheet 5. Enter the overall loss from
reflect the share that existed immediately
into consideration the following limitations.
each activity in column (a). Complete
before the total disposition. A partner's
The adjusted basis of your partnership
column (b) of Worksheet 5 according to its
“other liability” is any partnership liability
interest.
instructions. Multiply the total unallowed
for which a partner is personally liable.
The amount for which you are at risk.
loss from the PTP by each ratio in column
Use the total of the three amounts for
The passive activity limitations.
(b) and enter the result in column (c) of
computing the adjusted basis of your
Worksheet 5. Then, complete Worksheet
For information on these provisions,
partnership interest.
6 if all the loss from the same activity is to
see
Limitations on Losses, Deductions,
be reported on one form or schedule. Use
Generally, you can use only the
and
Credits, earlier.
Worksheet 7 instead of Worksheet 6 if you
amounts shown next to “Qualified
have more than one loss to be reported on
For individuals, the following
nonrecourse financing” and “Other” to
different forms or schedules for the same
instructions explain how to report the
figure your amount at risk. Do not include
activity. Enter the net loss plus any prior
amounts shown in the boxes. For all other
any amounts that are not at risk if such
year unallowed losses in column (a) of
entities, report the amounts in the boxes
amounts are included in either of these
Worksheet 6 (or Worksheet 7, if
as instructed on your income tax return.
categories.
applicable). The losses in column (c) of
The line numbers in these instructions
If your partnership is engaged in two or
Worksheet 6 (column (e) of Worksheet 7)
are references to forms in use for calendar
more different types of activities subject to
are the allowed losses to report on the
year 2014. If you file your tax return on a
the at-risk provisions, or a combination of
forms or schedules. Report both these
calendar year basis, but your partnership
at-risk activities and any other activity, the
losses and any income from the PTP on
files a return for a fiscal year, enter the
partnership should give you a statement
the forms and schedules you normally
amounts shown in the boxes on your tax
showing your share of nonrecourse
use.
return for the year in which the
liabilities, partnership-level qualified
4. If you have an overall loss and you
partnership's fiscal year ends. For
nonrecourse financing, and other liabilities
disposed of your entire interest in the PTP
example, if the partnership's tax year ends
for each activity.
on June 30, 2015, report the amounts in
to an unrelated person in a fully taxable
Qualified nonrecourse financing.
transaction during the year, your losses
the boxes on your 2015 income tax return.
Qualified nonrecourse financing generally
(including prior year unallowed losses)
If you have losses, deductions, or
includes financing for which no one is
allocable to the activity for the year are not
credits from a prior year that were not
personally liable for repayment that is
limited by the passive loss rules. A fully
deductible or usable because of certain
borrowed for use in an activity of holding
taxable transaction is one in which you
limitations, such as the basis rules or the
real property and that is loaned or
recognize all your realized gain (loss).
at-risk limitations, take them into account
guaranteed by a federal, state, or local
Report the income and losses on the
in determining your net income, loss, or
government or borrowed from a “qualified”
forms and schedules you normally use.
credits for this year. However, except for
person. Qualified nonrecourse financing
passive activity losses and credits, do not
secured by real property used in an
Note. For rules on the disposition of an
combine the prior year amounts with any
activity of holding real property that is
entire interest reported using the
amounts shown on this Schedule K-1 to
subject to the at-risk rules is treated as an
installment method, see the Instructions
get a net figure to report on any supporting
amount at risk.
for Form 8582.
schedules, statements, or forms attached
Qualified persons. Qualified persons
to your return. Instead, report the amounts
Specific Instructions
include any persons actively and regularly
separately on the attached schedule,
engaged in the business of lending
statement, or form on a year-by-year
Partner's identifying number. For your
money, such as a bank or savings and
basis.
protection, this Schedule K-1 may show
loan association. Qualified persons
only the last four digits of your social
generally do not include related parties
For amounts other than those shown
security number (SSN), individual
(unless the nonrecourse financing is
on Schedule K-1, enter each item on a
Instructions for Schedule K-1 (1065-B)
-6-
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