Instructions For Pa20s/pa-65 Schedule Nrk-1 - 2013 Page 6
ADVERTISEMENT
1
2
3
4
5
6Pennsylvania economic investment in
Line 15
Line 17
the entity, taking into consideration
Owner’s Share of IRC § 179
Partner’s Share of
the losses and distributions that may
Allowed According to
Nonrecourse Liabilities at
exceed their economic investment.
Pennsylvania Rules
Year-End
Submit a statement that includes the
entity’s name, federal employer
(Pennsylvania-Apportioned
Enter the partner’s share of
identification number and tax year
nonrecourse liabilities at year-end. A
Amount Only)
and provide a breakdown of all
nonrecourse liability is a secured
Enter the owner’s share of IRC § 179
nontaxable income earned and all
liability, identified by the partnership,
depreciation expense. Each entity
non-deductible expenses not taken.
for which the partners are not
and individual taxpayer is limited to
This amount should only include
personally liable. Nonrecourse
$25,000 of IRC § 179 depreciation
permanent differences needed to
liabilities apportion such debts to
expense. Do not deduct this amount
calculate the owner’s economic
each partner’s outside basis and
from any income class. The amount
investment in the entity. If reporting
validate deductions based on such
is used to verify that the owner has
a loss fill in the oval.
liabilities.
not exceeded the Pennsylvania limit.
The entity provides the owners
with this information so the owners
Line 18
Line 16
can calculate their economic
Partner’s Share of Recourse
Owner’s Share of Straight-
investment. Examples of nontaxable
Liabilities at Year-End
income are tax-exempt interest,
Line Depreciation
Enter the partner’s share of recourse
gifts, inheritance, loan proceeds,
(Pennsylvania-Apportioned
liabilities at year-end. A recourse
insurance proceeds and federal tax
Amount Only)
liability is one for which a partner is
refunds. Examples of nondeductible
Enter the owner’s share of the
personally liable.
expenses are partner's retirement
entity’s total expense. In years in
contributions, partner’s life and
which the entity incurs a loss and the
health insurance premiums.
owner is not able to use the entire
These items may be listed on
loss, the owner is required to reduce
federal Form 1120S Schedule K as
their economic investment in the
“Items Affecting Shareholder Basis”
entity by their share of straight-line
and on federal Form 1065 Schedule K
depreciation. Therefore, assets for
as “Other Information”.
which accelerated depreciation has
been calculated must be recalculated
using straight-line depreciation in
Part VII
order to calculate Pennsylvania
Supplemental
economic investment.
Information
The owners need this information to
determine their personal
Pennsylvania economic investment in
the entity. Lines 15 through 18 are
for information purposes only.
6
ADVERTISEMENT
0 votes
Related Articles
Related forms
Instructions For Form Pa-41 - Schedule Nrk-1 Nonresident Schedule Of Shareholder/partner/beneficiary Pass Through Income, Loss And Credits - 2012
Financial
Instructions For Form Pa-20s/pa-65 - Schedule Nrk-1 - Nonresident Schedule Of Shareholder/partner/beneficiary Pass Through Income, Loss And Credits - 2012
Financial
Instructions For Form Pa-41 - Schedule Rk-1 - Resident Schedule Of Shareholder/partner/beneficiary Pass Through Income, Loss And Credits - 2012
Financial
Instructions For Pa-20s/pa-65 Schedule Rk-1 - Resident Schedule Of Shareholder/partner/beneficiary Pass Through Income, Loss And Credits - 2011
Financial
Related Categories
Parent category: Financial