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

share of the partnership's expense and any

interest is investment interest expense and

Code B. Gross farming or fishing in-

reforestation expenses you separately paid

should be reported on Form 4952. If you

come. If you are an individual partner, enter

or incurred during the tax year.

materially participated in the activity, report

the amount from this line, as an item of

the interest on line 28 of Schedule E (Form

If you did not materially participate in the

information, on Schedule E (Form 1040),

1040). On a separate line, enter “interest

activity, use Form 8582 to figure the amount

line 42. Also use this amount to figure net

expense” and the name of the partnership in

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

earnings from self-employment under the

column (a) and the amount in column (h).

If you materially participated in the

farm optional method on Schedule SE (Form

Contributions to a capital construction

reforestation activity, report the deduction on

1040), Section B, Part II.

fund (CCF). The deduction for a CCF

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

Code C. Gross nonfarm income. If you

investment is not taken on Schedule E (Form

1040).

are an individual partner, use this amount to

1040). Instead, you subtract the deduction

Code T. Domestic production activities

figure net earnings from self-employment

from the amount that would normally be

information. The partnership will provide

under the nonfarm optional method on

entered as taxable income on line 43 (Form

you with a statement with information that

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

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

you must use to figure the domestic

enter "CCF" and the amount of the

production activities deduction. Use Form

deduction.

Box 15. Credits

8903, Domestic Production Activities

Penalty on early withdrawal of savings.

Deduction, to figure this deduction. See the

If you have credits that are passive activity

Report this amount on Form 1040, line 30.

Instructions for Form 8903 for details.

credits to you, you must complete Form

Film and television production expenses.

8582-CR (or Form 8810 for corporations) in

The partnership will provide a statement that

Code U. Qualified production activities

addition to the credit forms identified below.

describes the film or television production

income (QPAI). Report the QPAI reported

See

Passive Activity

Limitations, earlier, and

generating these expenses. Generally, if the

to you by the partnership (in box 13 of

the Instructions for Form 8582-CR (or Form

aggregate cost of the production exceeds

Schedule K-1) in the applicable column of

8810) for details.

$15 million, you are not entitled to the

Form 8903, line 7.

deduction. The limitation is $20 million for

Generally, you are not required to

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

productions in certain areas (see section 181

complete the source credit form or

Report the portion of Form W-2 wages

TIP

for details). If you did not materially

attach it to Form 3800 if you are a

reported to you by the partnership (in box 13

participate in the activity, use Form 8582 to

taxpayer that is not a partnership or S

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

determine the amount that can be reported

corporation, and your only source for a credit

on Schedule E (Form 1040), line 28, column

Code W. Other deductions. Amounts with

listed in Form 3800, Part III, is from a

(f). If you materially participated in the

this code may include:

partnership, S corporation, estate, trust, or

production activity, report the deduction on

Itemized deductions that Form 1040 filers

cooperative. (Instead, you can report this

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

report on Schedule A (Form 1040).

credit directly on Form 3800, Part III, and

Current year section 108(i) original issue

Soil and water conservation expenditures

enter the EIN of the partnership in column (b)

discount (OID) deduction. The partnership

and endangered species recovery

of Part III.) The following exceptions apply:

will provide your share of the partnership's

expenditures. See section 175 for limitations

You are claiming the investment credit

OID deduction deferred under section 108(i)

on the amount you are allowed to deduct.

(Form 3468) or the biodiesel and renewable

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

Expenditures for the removal of

diesel fuels credit (Form 8864) in Part III with

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

architectural and transportation barriers to

box A or B checked.

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

the elderly and disabled that the partnership

The taxpayer is an estate or trust and the

The partnership will give you a

elected to treat as a current expense. The

source credit can be allocated to

deductions are limited by section 190(c) to

description and the amount of your share for

beneficiaries. For more details, see the

$15,000 per year from all sources.

each of these items.

Instructions for Form 1041, U.S. Income Tax

Interest expense allocated to

Return for Estates and Trusts, Schedule K-1,

debt-financed distributions. The manner in

box 13.

Box 14. Self-Employment

which you report such interest expense

The taxpayer is a cooperative and the

Earnings (Loss)

depends on your use of the distributed debt

source credit can or must be allocated to

proceeds. If the proceeds were used in a

patrons. For more details, see the

If you and your spouse are both partners,

trade or business activity, report the interest

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

each of you must complete and file your own

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

Tax Return for Cooperative Associations,

Schedule SE (Form 1040), Self-Employment

column (a) enter the name of the partnership

Schedule J, line 5c.

Tax, to report your partnership net earnings

and “interest expense.” If you materially

(loss) from self-employment.

participated in the trade or business activity,

Codes A, B, C, and D. Low-income hous-

enter the interest expense in column (h). If

Code A. Net earnings (loss) from

ing credit. If section 42(j)(5) applies, the

you did not materially participate in the

self-employment. If you are a general

partnership will report your share of the

activity, follow the Instructions for Form 8582

partner, reduce this amount before entering it

low-income housing credit using code A or

to figure the interest expense you can report

on Schedule SE (Form 1040) by any section

code C, depending on the date the building

in column (f). See the definition of material

179 expense deduction claimed,

was placed in service. If section 42(j)(5)

participation, earlier. If the proceeds were

unreimbursed partnership expenses

does not apply, your share of the credit will

used in an investment activity, report the

claimed, and depletion claimed on oil and

be reported using code B or code D,

interest on Form 4952. If the proceeds are

gas properties. Do not reduce net earnings

depending on the date the building was

used for personal purposes, the interest is

from self-employment by any separately

placed in service. Any allowable low-income

generally not deductible.

stated deduction for health insurance

housing credit reported using code A or code

Interest paid or accrued on debt properly

expenses.

B is reported on line 4 of Form 8586,

allocable to your share of a working interest

Low-Income Housing Credit, or line 1d of

If the amount on this line is a loss, enter

in any oil or gas property (if your liability is

Form 3800 (see TIP, earlier). Any allowable

only the deductible amount on Schedule SE

not limited). If you did not materially

low-income housing credit reported using

(Form 1040). See

Limitations on Losses,

participate in the oil or gas activity, this

code C or code D is reported on line 11 of

Deductions, and

Credits, earlier.

interest is investment interest reportable as

Form 8586 or line 4d of Form 3800.

If your partnership is an options dealer or

described earlier, under Code H. Investment

Keep a separate record of the

a commodities dealer, see section 1402(i).

interest expense; otherwise, it is trade or

low-income housing credit from each

If your partnership is an investment club,

business interest. If you did not materially

separate source so that you can correctly

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

participate in the oil or gas activity, this

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

-11-

Partner'S Instructions For Schedule K-1 (Form 1065) - Partner'S Share Of Income, Deductions, Credits, Etc. (For Partner'S Use Only) - 2014 Page 11

Related Articles

Related forms

Related Categories