Instructions For Pa20s/pa-65 Schedule Rk-1 - 2013 Page 6
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6employer identification number and
Line 17
Line 19
tax year and provide a breakdown of
Owner’s Share of IRC § 179
Partner’s Share of Non
all nontaxable income earned and all
Allowed According to
Recourse Liabilities at Year-
nondeductible expenses not taken.
Pennsylvania Rules
End
This amount should only include
permanent differences needed to
Enter the owner’s share of IRC § 179
Enter the partner’s share of non
calculate the owner’s basis in the
depreciation expense. Each entity
recourse liabilities at year-end.
entity. If reporting a loss, fill in the
and individual taxpayer is limited to
A non recourse liability is a
oval.
$25,000 of IRC § 179 depreciation
secured liability, identified by the
The entity provides the owners
expense. Do not deduct this amount
partnership, for which the partners
with this information so the owners
from any income class. This amount
are not personally liable.
can calculate their basis. Examples of
is used to verify the owner has not
Non recourse liabilities apportion
nontaxable income are tax-exempt
exceeded the Pennsylvania limit.
such debts to each partner’s outside
interest, gifts, inheritance, loan
basis and validate deductions based
proceeds, insurance proceeds and
Line 18
on such liabilities.
federal tax refunds. Examples of non-
Owner’s Share of Straight-
deductible expenses are partner's
Line 20
Line Depreciation
retirement contributions, partner's
Partner’s Share of Recourse
Enter the owner’s share of the
life and health insurance premiums.
Liabilities at Year-End
entity’s total expense. In years in
These items may be listed on
which the entity incurs a loss and the
Enter the partner’s share of recourse
federal Form 1120S Schedule K as
owner is not able to use the entire
liabilities at year-end. A recourse
“Items Affecting Shareholder Basis”
loss, the Pennsylvania Tax Benefit
liability is one for which a partner is
and on federal Form 1065 Schedule K
Rule requires the owner to reduce
personally liable.
as “Other Information.”
their basis in the entity by their share
of straight-line depreciation.
Part VII
Therefore, assets for which
accelerated depreciation has been
Supplemental
calculated must be recalculated using
Information
straight-line depreciation in order to
The owners need this information to
calculate Pennsylvania basis. Refer to
determine their personal
the Pennsylvania Personal Income
Tax Guide, Chapter 16 for more
Pennsylvania basis in the entity,
information on the Pennsylvania Tax
taking into consideration the
Pennsylvania Tax Benefit Rule and
Benefit Rule.
distributions that may exceed their
ownership interests.
Refer to the Pennsylvania Personal
Income Tax Guide, Chapter 16 for
more information on the
Pennsylvania Tax Benefit Rule.
Lines 17 through 20 are for
information purposes only.
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