Looking for a Alabama Schedule K-1 Templates? Download it for free!

SCHEDULE

NSTRUCTIONS

REPARATION OF

2007

K-1

LABAMA

EPARTMENT OF

EVENUE

Pass Through Entity

INSTRUCTIONS

Owner’s/Shareholder’s Statement of Income and Deductions

Instructions to Pass-Through Entity

Line I. Enter the pass-through entity owner’s percentage of profit

and (loss) sharing during the tax year.

General Instructions. The Alabama Schedule K-1 is a required

Line J. Check the appropriate box to indicate if the pass-through

attachment to the Alabama Form 65 and the Alabama Form 20S. The

entity owner is a resident of Alabama or a nonresident. If the pass-

Alabama Schedule K-1 is similar to the federal Schedule K-1 in that it is

through entity owner is a corporation check the resident box if the cor-

used to report the pass-through entity owners’ share of income, deduc-

poration was incorporated in Alabama, otherwise check the nonresident

tions, credits and other items.

box. If the pass-through entity owner is a limited liability entity (LLC,

LLP, etc.) check the resident box if the limited liability entity was organ-

The format of the Alabama Schedule K-1 differs from

ized in Alabama, otherwise check the nonresident box.

that of the federal Schedule K-1 – therefore the federal

Schedule K-1 cannot serve as a substitute for the

Line K. Enter the pass-through entity owner’s basis in the pass-

through entity.

Alabama Schedule K-1.

Line L. Enter additional notes, as needed.

The term “pass-through entity” will be used in these instructions to

refer to Alabama S corporations and subchapter K entities. Generally,

Part III – Owner’s/Shareholder’s Share of Current Year

the term “pass-through entity owner” will be used in these instructions to

Alabama Income, Deductions, Credits, and Other Items.

refer to any shareholder of an Alabama S corporation doing business in

Alabama or any owner of a subchapter K entity doing business in

Line M – Nonseparately Stated Income Allocated and

Alabama. See Section 40-18-160, Code of Alabama 1975, for an

Apportioned to Alabama. Enter the pass-through entity owner’s prora-

explanation of an Alabama S corporation. See Section 40-18-1, Code

ta share of the nonseparately stated income allocated and apportioned

of Alabama 1975, for a definition of subchapter K entity.

to Alabama. The total amount apportioned to Alabama for the pass-

through entity is reported on Schedule K, line 1 (Alabama Amount col-

Heading Information. Enter in the upper left area of the form

umn) of the accompanying Alabama Form 65 or Alabama Form 20S.

whether the pass-through entity is a Subchapter K entity or an Alabama

S corporation. Provide the tax period information if the return is filed for

Line N – Amount of Guaranteed Payments to Partner to be

other than the 2007 calendar year. Enter in the upper right area of the

Reported by the Partner as Alabama Source Income.

form if the Schedule K-1 is either a final K-1 or an amended K-1.

Line N applies only to owners of subchapter K entities.

Part I – Information About the Pass-Through Entity.

The entire amount of guaranteed payments received by the owner of

Enter on line A the pass-through entity’s Federal Employer

the subchapter K entity should be reported on this line - if the owner is

Identification Number. Enter on line B the pass-through entity’s name

an Alabama resident individual, a subchapter K entity, or a corporation.

and mailing address (street address, city, state and zip code).

The apportioned amount of the guaranteed payments received by the

owner of the subchapter K entity should be reported on this line, only if

Part II – Information About the Pass-Through Entity

the owner is an individual that is not an Alabama resident.

Owner.

The total amount of guaranteed payments for the subchapter K enti-

ty was reported on Schedule K, line 15 (Federal Amount column) of the

Line C. Enter the pass-through entity owner’s social security number

accompanying Alabama Form 65. The apportioned amount of guaran-

or federal identification number.

teed payments for the subchapter K entity was reported on Schedule K,

Line D. Enter the name of the pass-through entity owner.

line 15 (Alabama Amount column) of the accompanying Alabama Form

65.

Line E. Enter the street address of the pass-through entity owner.

Line O – Section 179 Expense. Enter the pass-through entity

Line F. Enter the city, state, and zip code for the pass-through entity

owner’s prorata share of the section 179 expense apportioned to

owner.

Alabama. The total amount apportioned to Alabama for the pass-

Line G. If the pass-through entity is an Alabama S corporation, line

through entity is reported on Schedule K, line 4 (Alabama Amount col-

G does not apply. Otherwise, check the appropriate box to indicate if

umn) of the accompanying Alabama Form 65 or Alabama Form 20S.

the pass-through entity owner is a general partner or limited liability

Line P – Investment Interest Expense Related to Portfolio

company member manager or if the pass-through entity owner is a limit-

Income. Enter the pass-through entity owner’s prorata share of the

ed partner or a non-manager member of a limited liability company.

interest expense related to portfolio income apportioned to Alabama.

Line H. Enter the entity type of the pass-through entity owner (indi-

The total amount apportioned to Alabama for the pass-through entity is

vidual, trust, partnership, S corporation, C corporation or disregarded

reported on Schedule K, line 7 (Alabama Amount column) of the accom-

entity).

panying Alabama Form 65 or Alabama Form 20S.

Instructions For The Preparation Of Alabama Department Of Revenue Pass Through Entity - Schedule K-1 - 2007

Related Articles

Related Categories