4
votes
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Why is K-1 business income taxed at 50%?
That's really not something that can be answered based on the information provided. There are a lot of factors involved: type of income, your wife's tax bracket, the split between Federal and State (...
- 162k
4
votes
How to allocate profit and loss in partnership where one partner's activities are profitable and the other's aren't?
You should have a partnership agreement of some sort. The reason partnership agreements exist is so nobody can change the game because of the outcome.
I'd say the most typical partnership ...
- 48.9k
3
votes
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What is the relationship between filing personal income taxes and K-1 distributions (from form 1065)?
My confusion is that when entering these K-1s on our personal return, there's a massive increase of taxes owed, yet I thought that all taxes have been deducted when I reported the 1099s employment ...
- 162k
3
votes
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How to avoid getting double taxed by 1099-B / K-1
Not only publicly-traded (listed) parternerships but many others also are structured as master/limited partnerships (often shortened to limited partnerships) with usually many 'limited' passive ...
- 4,518
3
votes
Accepted
What is the tax liability from an inheritance from a trust and reported on a K-1 form?
You don't need to submit a K-1 form to anyone, but you will need to transcribe various entries on the K-1 form that you will receive onto the appropriate lines on your tax return. Broadly speaking, ...
- 31.6k
2
votes
Accepted
Can 1099s from a special needs trust be entered directly on the beneficiary's personal income tax return?
The two quotes from TurboTax cover the 2 basic flavors of trust. The former, with its own TIN, thus needing to file a return and account for realized gain or dividends, and the latter, a pass thru ...
2
votes
Accepted
Received K-1 from ETF whose basis wasn't reported. Can I use just Schedule D without Form 8949?
I think you did the right thing. The brokerage's instruction to use Form 8949 because the basis wasn't reported sounds like a generic statement that doesn't take into account your receiving a K-1 for ...
- 29.4k
2
votes
Multi-state K-1 earnings to S-Corp
I'm not sure why you think that it matters that the distribution goes to an S-Corp vs an individual tax payer. You seem to think it has any relevance to your question, but it doesn't. It only confuses ...
- 162k
2
votes
Accepted
Is it optional to take a passive loss deduction?
Because of the revised K-1s for 2020, I have to file an amended return, and that e-mail seems to be telling me that I have the choice of whether to take the 2020 loss in 2020 or carry it forward.
No, ...
- 162k
2
votes
Accepted
How to apply the basis limitation on a passive loss?
The instructions to the form provide the necessary guidance:
Coordination With Other Limitations
Generally, PALs are subject to other limitations (for example, basis and at-risk limitations) before ...
- 162k
2
votes
Do I pay a K-1 if I make below $3000 in a year?
"Generally, any income, capital gain/loss, expense and other items reported to you on the Schedule K-1 must be included in your tax return."
https://www.uscfinvestments.com/k1-information
...
2
votes
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Schedule K-1: Capital percentage, what is someone has not contributed capital but own 50% of shares?
From the instructions:
The ending percentage share shown on the Capital line is the portion of the capital you would receive if the partnership was liquidated at the end of its tax year by the ...
- 162k
1
vote
Passthrough LLC: Do I have to file Schedule K-1 for a partner that gets 0% of profit?
LLCs are presumed flow-through entities, unless they elect otherwise.
It is perfectly possible to have an LLC member or partnership partner who holds an interest without having made a capital ...
- 11
1
vote
On Schedule K-1 (Form 1065), is Box 10 (Net section 1231 gain) a superset of Box 9c (unrecaptured section 1250 gain)?
No, Sec. 1250 gain comes first, what's left is covered by Sec. 1231.
Sec. 1250 gain is taxed differently from Sec. 1231, so it would not make sense to one being superset of the other.
- 162k
1
vote
How does a non resident alien report income & dividends from a K1?
Is this ECI?
No. You do not have a US trade or business.
Can I just put it in line 2b in the 1040NR?
No, you don't need to report interest payments unless they're related to your US trade or ...
- 162k
1
vote
Required to fill out Form 7203 per TurboTax for S-Corp K-1?
Not a tax pro by any means, but, in general, if you received bonafide distributions (not dividends - these are generally two different things when dealing with s-corps) from your s-corp, you need to ...
- 153
1
vote
Required to fill out Form 7203 per TurboTax for S-Corp K-1?
You need to file this form to track your basis in your S-Corp. Your K-1 said that your basis has changed (line 16), so you need to show the IRS what your new basis now is. If the distribution exceeds ...
- 162k
1
vote
Accepted
for a simple real estate rental LLC, how much data goes on tax form 1065 vs form 8825?
do I include my state lic fees on the 8825 under misc or put them on page 1 of 1065?
The LLC fee is not per property and not attributed to property so it shouldn't go on the form 8825.
do i put all ...
- 162k
1
vote
Accepted
Taxes and K-1 Partnership
If you are no longer a partner in a partnership as of the end of any taxable year, you should not receive any more K-1 from that partnership for any subsequent taxable year. So, in your example, ...
- 1,236
1
vote
Vanguard sent 1099 for my MLP stock sale. Am I being taxed twice when I file the K1?
The K-1 generally supersedes the 1099 for MLPs. Look for a "Sales Schedule" included with the K-1, listing the basis and sale proceeds. See also this question.
- 29.4k
1
vote
1041 not supported by tax software - file as regular and 1040X to adjust?
I talked this over with a relative who is a CPA, and she said that as long as the numbers end up on the Interest and qual/nonqual dividend lines on the 1040 eventually that it should be okay.
So my ...
- 35.7k
1
vote
Accepted
Will Receive K-1 from Trust: Roth IRA
No, this income cannot be used to fund an IRA because trust distributions are not earned income. IRAs can only be funded by earned income due to employment.
Even if you have some tax liability (from ...
- 23.9k
1
vote
Grantor Tax Information Letter
Typically, the K-1 comes from trusts whose terms dictate distribution of earnings by the trust during the year. The K-1 information will flow right to the beneficiary tax return.
The second return ...
1
vote
1099-MISC vs K-1 -- duplicated numbers?
Well, you won't be double taxed based on what you described. Partners are taxed on income, typically distributions. Your gain in the partnership is not income. However, you were essentially given some ...
- 763
1
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Avoiding tax complexities of MLPs
The answer is yes, MLP ETFs such as AMZA and MLPA eliminate the need to process K-1's yourself. They handle all the complex tax paperwork for you.
Source: personal experience
- 584
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