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

reported on Schedule E (Form 1040),

and “interest expense.” If you materially

Schedule SE (Form 1040), Self-Employment

line 28, column (f).

participated in the trade or business activity,

Tax, to report your partnership net earnings

enter the interest expense in column (h). If

(loss) from self-employment.

Code R. Pensions and IRAs. Payments

you didn't materially participate in the

made on your behalf to an IRA, qualified

Code A. Net earnings (loss) from

activity, follow the Instructions for Form 8582

plan, simplified employee pension (SEP), or

self-employment. If you are a general

to figure the interest expense you can report

a SIMPLE IRA plan. See the Form 1040

partner, reduce this amount before entering it

in column (f). See the definition of material

instructions for line 32 to figure your IRA

on Schedule SE (Form 1040) by any section

participation, earlier. If the proceeds were

deduction. Enter payments made to a

179 expense deduction claimed,

used in an investment activity, report the

qualified plan, SEP, or SIMPLE IRA plan on

unreimbursed partnership expenses

interest on Form 4952. If the proceeds are

Form 1040, line 28. If the payments to a

claimed, and depletion claimed on oil and

used for personal purposes, the interest is

qualified plan were to a defined benefit plan,

gas properties. Do not reduce net earnings

generally not deductible.

the partnership should give you a statement

from self-employment by any separately

Interest paid or accrued on debt properly

showing the amount of the benefit accrued

stated deduction for health insurance

allocable to your share of a working interest

for the current tax year.

expenses.

in any oil or gas property (if your liability isn't

If the amount on this line is a loss, enter

Code S. Reforestation expense deduc-

limited). If you didn't materially participate in

only the deductible amount on Schedule SE

the oil or gas activity, this interest is

tion. The partnership will provide a

(Form 1040). See

Limitations on Losses,

statement that describes the qualified timber

investment interest reportable as described

Deductions, and

Credits, earlier.

property for these reforestation expenses.

earlier, under Code H. Investment interest

expense; otherwise, it is trade or business

The expense deduction is limited to $10,000

If your partnership is an options dealer or

($5,000 if married filing separately) for each

interest. If you didn't materially participate in

a commodities dealer, see section 1402(i).

qualified timber property, including your

the oil or gas activity, this interest is

If your partnership is an investment club,

investment interest expense and should be

share of the partnership's expense and any

see Rev. Rul. 75-525, 1975-2 C.B. 350.

reforestation expenses you separately paid

reported on Form 4952. If you materially

Code B. Gross farming or fishing in-

participated in the activity, report the interest

or incurred during the tax year.

on line 28 of Schedule E (Form 1040). On a

come. If you are an individual partner, enter

If you didn't materially participate in the

the amount from this line, as an item of

separate line, enter “interest expense” and

activity, use Form 8582 to figure the amount

the name of the partnership in column (a)

information, on Schedule E (Form 1040),

to report on Schedule E (Form 1040), line 28.

line 42. Also use this amount to figure net

and the amount in column (h).

If you materially participated in the

earnings from self-employment under the

Contributions to a capital construction

reforestation activity, report the deduction on

fund (CCF). The deduction for a CCF

farm optional method on Schedule SE (Form

line 28, column (h), of Schedule E (Form

1040), Section B, Part II.

investment isn't taken on Schedule E (Form

1040).

1040). Instead, you subtract the deduction

Code C. Gross nonfarm income. If you

Code T. Domestic production activities

from the amount that would normally be

are an individual partner, use this amount to

information. The partnership will provide

entered as taxable income on line 43 (Form

figure net earnings from self-employment

you with a statement with information that

1040). In the margin to the left of line 43,

under the nonfarm optional method on

you must use to figure the domestic

enter "CCF" and the amount of the

Schedule SE (Form 1040), Section B, Part II.

production activities deduction. Use Form

deduction.

8903, Domestic Production Activities

Penalty on early withdrawal of savings.

Deduction, to figure this deduction. See the

Box 15. Credits

Report this amount on Form 1040, line 30.

Instructions for Form 8903 for details.

Film, television, and live theatrical

If you have credits that are passive activity

production expenses. The partnership will

Code U. Qualified production activities

credits to you, you must complete Form

provide a statement that describes the film,

income (QPAI). Report the QPAI reported

8582-CR (or Form 8810 for corporations) in

television, or live theatrical production

to you by the partnership (in box 13 of

addition to the credit forms identified below.

generating these expenses. Generally, if the

Schedule K-1) in the applicable column of

See

Passive Activity

Limitations, earlier, and

aggregate cost of the production exceeds

Form 8903, line 7.

the Instructions for Form 8582-CR (or Form

$15 million, you are not entitled to the

8810) for details.

Code V. Employer's Form W-2 wages.

deduction. The limitation is $20 million for

Report the portion of Form W-2 wages

productions in certain areas (see section 181

Generally, you are not required to

reported to you by the partnership (in box 13

for details). If you didn't materially participate

complete the source credit form or

TIP

of Schedule K-1) on line 17 of Form 8903.

in the activity, use Form 8582 to determine

attach it to Form 3800 if you are a

the amount that can be reported on

taxpayer that isn't a partnership or S

Code W. Other deductions. Amounts with

Schedule E (Form 1040), line 28, column (f).

corporation, and your only source for a credit

this code may include the following.

If you materially participated in the

listed in Form 3800, Part III, is from a

Itemized deductions that Form 1040 filers

production activity, report the deduction on

partnership, S corporation, estate, trust, or

report on Schedule A (Form 1040).

Schedule E (Form 1040), line 28, column (h).

cooperative. (Instead, you can report this

Soil and water conservation expenditures

Current year section 108(i) original issue

credit directly on Form 3800, Part III, and

and endangered species recovery

discount (OID) deduction. The partnership

enter the EIN of the partnership in column (b)

expenditures. See section 175 for limitations

will provide your share of the partnership's

of Part III.) The following exceptions apply.

on the amount you are allowed to deduct.

OID deduction deferred under section 108(i)

Expenditures for the removal of

You are claiming the investment credit

(2)(A)(i) that is allowable as a deduction in

architectural and transportation barriers to

(Form 3468) or the biodiesel and renewable

the current tax year under section 108(i)(2)

the elderly and disabled that the partnership

diesel fuels credit (Form 8864) in Part III with

(A)(ii) or section 108(i)(5)(D)(i) or (ii).

elected to treat as a current expense. The

box A or B checked.

The partnership will give you a

deductions are limited by section 190(c) to

The taxpayer is an estate or trust and the

description and the amount of your share for

$15,000 per year from all sources.

source credit can be allocated to

each of these items.

Interest expense allocated to

beneficiaries. For more details, see the

debt-financed distributions. The manner in

Instructions for Form 1041, U.S. Income Tax

which you report such interest expense

Return for Estates and Trusts, Schedule K-1,

Box 14. Self-Employment

depends on your use of the distributed debt

box 13.

Earnings (Loss)

proceeds. If the proceeds were used in a

The taxpayer is a cooperative and the

trade or business activity, report the interest

source credit can or must be allocated to

If you and your spouse are both partners,

on line 28 of Schedule E (Form 1040). In

patrons. For more details, see the

each of you must complete and file your own

column (a), enter the name of the partnership

Instructions for Form 1120-C, U.S. Income

Partner's Instructions for Schedule K-1 (Form 1065)

-11-

Instructions For Schedule K-1 (Form 1065) - Partner'S Share Of Income, Deductions, Credits, Etc. - 2017 Page 11

Related Articles

Related forms

Related Categories