Instructions For Pa-20s/pa-65 Schedule Nrk-1

Instructions For Pa-20s/pa-65 Schedule Nrk-1 - 2011 Page 6

Line 16

Owner’s Share of Straight-

Line Depreciation

(Pennsylvania-Apportioned

Amount Only)

Enter the owner’s share of the

entity’s total expense. In years in

which the entity incurs a loss and the

owner is not able to use the entire

loss, the owner is required to reduce

their economic investment in the

entity by their share of straight-line

depreciation. Therefore, assets for

which accelerated depreciation has

been calculated must be recalculated

using straight-line depreciation in

order to calculate Pennsylvania

economic investment.

Line 17

Partner’s Share of

Nonrecourse Liabilities at

Year-End

Enter the partner’s share of

nonrecourse liabilities at year-end. A

nonrecourse liability is a secured

liability, identified by the partnership,

for which the partners are not

personally liable. Nonrecourse

liabilities apportion such debts to

each partner’s outside basis and

validate deductions based on such

liabilities.

Line 18

Partner’s Share of Recourse

Liabilities at Year-End

Enter the partner’s share of recourse

liabilities at year-end. A recourse

liability is one for which a partner is

personally liable.

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Instructions for PA-20S/PA-65 Schedule NRK-1

Instructions For Pa-20s/pa-65 Schedule Nrk-1 - 2011 Page 6