Instructions For Form Pa-20s/pa-65 - Schedule Rk-1 - Resident Schedule Of Shareholder/partner/beneficiary Pass Through Income, Loss And Credits - 2012 Page 6
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6Submit a statement that includes
Refer to the Pennsylvania Personal
the Pennsylvania Personal Income
Tax Guide, Chapter 16 for more
the entity’s name, entity’s federal
Income Tax Guide, Chapter 16 for
employer identification number and
more information on the
information on the Pennsylvania Tax
tax year and provide a breakdown of
Pennsylvania Tax Benefit Rule.
Benefit Rule.
all nontaxable income earned and all
Lines 17 through 20 are for
Line 19
nondeductible expenses not taken.
information purposes only.
This amount should only include
Partner’s Share of Non
Line 17
permanent differences needed to
Recourse Liabilities at Year-
calculate the owner’s basis in the
Owner’s Share of IRC § 179
End
entity. If reporting a loss, fill in the
Allowed According to
oval.
Enter the partner’s share of non
Pennsylvania Rules
The entity provides the owners
recourse liabilities at year-end.
with this information so the owners
Enter the owner’s share of IRC § 179
A non recourse liability is a
can calculate their basis. Examples of
depreciation expense. Each entity
secured liability, identified by the
nontaxable income are tax-exempt
and individual taxpayer is limited to
partnership, for which the partners
interest, gifts, inheritance, loan
$25,000 of IRC § 179 depreciation
are not personally liable.
proceeds, insurance proceeds and
expense. Do not deduct this amount
Non recourse liabilities apportion
federal tax refunds. Examples of non-
from any income class. This amount
such debts to each partner’s outside
deductible expenses are partner's
is used to verify the owner has not
basis and validate deductions based
retirement contributions, partner's
exceeded the Pennsylvania limit.
on such liabilities.
life and health insurance premiums.
Line 18
Line 20
These items may be listed on
federal Form 1120S Schedule K as
Owner’s Share of Straight-
Partner’s Share of Recourse
“Items Affecting Shareholder Basis”
Line Depreciation
Liabilities at Year-End
and on federal Form 1065 Schedule K
Enter the owner’s share of the
Enter the partner’s share of recourse
as “Other Information.”
entity’s total expense. In years in
liabilities at year-end. A recourse
which the entity incurs a loss and the
liability is one for which a partner is
Part VII
owner is not able to use the entire
personally liable.
loss, the Pennsylvania Tax Benefit
Supplemental
Rule requires the owner to reduce
Information
their basis in the entity by their share
of straight-line depreciation.
The owners need this information to
Therefore, assets for which
determine their personal
accelerated depreciation has been
Pennsylvania basis in the entity,
calculated must be recalculated using
taking into consideration the
straight-line depreciation in order to
Pennsylvania Tax Benefit Rule and
calculate Pennsylvania basis. Refer to
distributions that may exceed their
ownership interests.
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Instructions for PA-20S/PA-65 Schedule RK-1
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