1 Ordinary Business Income (Loss)
Box 1
Ordinary Business Income (Loss)Schedule E, Part II → passive/nonpassive determination
Income
2 Net Rental Real Estate Income (Loss)
Box 2
Net Rental Real Estate Income (Loss)Schedule E → passive activity rules; may trigger Form 8582
Income
3 Other Net Rental Income (Loss)
Box 3
Other Net Rental Income (Loss)Schedule E → includes equipment rentals and certain royalties
Income
4 Guaranteed Payments
4a
Guaranteed Payments for ServicesSchedule E → ordinary income; SE tax applies
Income
4b
Guaranteed Payments for CapitalSchedule E → ordinary income; SE tax generally not applicable
Income
4c
Guaranteed Payments - TotalSum of 4a + 4b for reference
Income
5 Interest Income
Box 5
Interest IncomeSchedule B, Part I → investment income
Income
6 Dividends
6a
Ordinary DividendsSchedule B, Part II
Income
6b
Qualified DividendsForm 1040 line 3a → eligible for 0/15/20% rate
Income
6c
Dividend EquivalentsCertain substitute payments treated as dividends
Income
7 Royalties
Box 7
RoyaltiesSchedule E, Part I → generally passive
Income
8 Net Short-Term Capital Gain (Loss)
Box 8
Net Short-Term Capital Gain (Loss)Schedule D, Part I
Income
9 Net Long-Term Capital Gain (Loss)
9a
Net Long-Term Capital Gain (Loss)Schedule D, Part II
Income
9b
Collectibles (28%) Gain (Loss)28% rate gains from art, coins, antiques → Schedule D
Income
9c
Unrecaptured Section 1250 GainUp to 25% rate on depreciation recapture on real property → Schedule D Unrecap. 1250 Wksht
Income
10 Net Section 1231 Gain (Loss)
Box 10
Net Section 1231 Gain (Loss)Form 4797, Part I → business property; if gain: LTCG; if loss: ordinary
Income
11 Other Income (Loss) - Codes
11A
Other Portfolio Income (Loss)Schedule E → investment income not otherwise classified
Income
11B
Involuntary ConversionsForm 4684 or Form 4797 → casualty/condemnation gains
Income
11C
Section 1256 Contracts & StraddlesForm 6781 → 60/40 long/short capital gain
Income
11F
Section 743(b) Positive AdjustmentsInside basis step-up from §754 election; informational for partner
Info
12 Section 179 Deduction
Box 12
Section 179 DeductionForm 4562 → limited to partner's taxable income from all sources; excess carries forward
Deduction
13 Other Deductions - Codes
13A
Cash Contributions (60%)Schedule A → charitable contributions limited to 60% AGI
Deduction
13B
Cash Contributions (30%)Schedule A → 30% AGI limit (to certain private foundations)
Deduction
13C
Noncash Contributions (50%)Schedule A → qualified noncash charitable gifts
Deduction
13D
Noncash Contributions (30%)Schedule A → 30% AGI limit
Deduction
13E
Capital Gain Property to 50% Orgs (20%)Schedule A → appreciated property gifts to public charities
Deduction
13G
Investment Interest ExpenseForm 4952 → limited to net investment income
Deduction
13I
Deductions - Royalty IncomeSchedule E → expenses allocable to royalty income
Deduction
13J
Section 59(e)(2) ExpendituresR&D or mining costs partner may elect to capitalize over 10 years instead of deducting
Deduction
13K
Excess Business Interest ExpenseForm 8990 → §163(j) limitation; carries forward as excess business interest expense
Deduction
13M
Penalties and FinesGenerally nondeductible to partners (IRC §162(f))
Deduction
13W
Other DeductionsCatch-all; description will appear in supplemental statement attached to K-1
Deduction
14 Self-Employment Earnings (Loss)
14A
Net Earnings (Loss) from Self-EmploymentSchedule SE → subject to SE tax; general partners and LLC members in operating businesses
Income
14B
Gross Farming or Fishing IncomeSchedule SE → used to determine if optional SE method applies
Income
14C
Gross Non-Farm IncomeSchedule SE → used for optional SE tax calculation
Income
15 Credits
15A
Low-Income Housing Credit (Pre-2008 Buildings)Form 8586 → passive activity credit
Credit
15B
Low-Income Housing Credit (Post-2007 Buildings)Form 8586
Credit
15C
Qualified Rehabilitation Expenditures (Rental)Form 3468 → historic rehab credit; passive activity credit rules
Credit
15F
Other Rental CreditsForm 3800 → general business credit bucket
Credit
15P
Research Activities CreditForm 6765 → §41 R&D credit; passed through to partners
Credit
17 Alternative Minimum Tax (AMT) Items
17A
Post-1986 Depreciation AdjustmentForm 6251 → difference between regular and AMT depreciation
AMT
17B
Adjusted Gain or Loss (AMT)Form 6251 → recalculated under AMT depreciation basis
AMT
17C
Depletion (AMT)Form 6251 → excess percentage depletion over cost depletion
AMT
18 Tax-Exempt Income & Nondeductible Expenses
18A
Tax-Exempt Interest IncomeForm 1040 → increases outside basis; used in AMT and SS benefit calculations
Info
18B
Other Tax-Exempt IncomeIncreases outside basis; not reported as income
Info
18C
Nondeductible ExpensesReduces outside basis; not deductible (meals disallowed portion, fines, etc.)
Info
19 Distributions
19A
Cash and Marketable SecuritiesReduces outside basis; taxable only when exceeds basis (IRC §731)
Info
19B
Distribution of PropertyGenerally not taxable at distribution; partner takes carryover basis (IRC §732)
Info
20 Other Information - Codes (Most Important)
20A
Investment IncomeForm 4952 → used to determine investment interest expense deduction limit
Info
20B
Investment ExpensesForm 4952 → reduces net investment income
Info
20C
Fuel Tax Credit InformationForm 4136
Credit
20N
Business Interest IncomeForm 8990 → §163(j) calculation; partner's share of gross business interest income
Info
20P
Partner's Adjusted Taxable Income (ATI)Form 8990 → §163(j) ATI computation; key input for interest limitation
Info
20Q
Excess Business Interest IncomeForm 8990 → reduces partner's deductible business interest
Info
20R
PTP Income (Loss)Passive activity → PTP losses can only offset PTP income from same PTP
Income
20V
Unrelated Business Taxable Income (UBTI)Critical for IRAs and tax-exempt partners → IRA owning partnership interest may owe UBIT
Income
20Z
Section 199A InformationWorksheet for §199A QBI deduction → QBI, W-2 wages, unadjusted basis of assets; broken into sub-codes 20Z1-20Z6
Deduction
20Z-1
QBI - Ordinary Business Income§199A worksheet → the primary income component for the 20% QBI deduction
Deduction
20Z-2
W-2 Wages Paid by the Partnership§199A W-2 wage limitation: deduction cannot exceed 50% of W-2 wages (or 25% + 2.5% of UBIA)
Deduction
20Z-3
UBIA of Qualified Property§199A alternative W-2 wage + capital test: 25% of W-2 wages + 2.5% of unadjusted basis of qualified property
Deduction
20AA
Section 751 Gain (Hot Asset Recapture)Ordinary income on sale of partnership interest attributable to unrealized receivables and inventory
Income
20AB
Section 1061 Information (Carried Interest)3-year holding period requirement for capital gain on carried interests; recharacterizes short-term gain
Income
20AH
Other InformationCatch-all; see supplemental statement attached to K-1 for details
Info
1 Ordinary Business Income (Loss)
Box 1
Ordinary Business Income (Loss)Schedule E, Part II → passive/nonpassive; at-risk and basis limits apply
Income
2 Net Rental Real Estate Income (Loss)
Box 2
Net Rental Real Estate Income (Loss)Schedule E → passive; Form 8582 may apply
Income
3 Other Net Rental Income (Loss)
Box 3
Other Net Rental Income (Loss)Schedule E → equipment rental and similar
Income
4 Interest Income
Box 4
Interest IncomeSchedule B → investment income
Income
5 Dividends
5a
Ordinary DividendsSchedule B, Part II
Income
5b
Qualified DividendsForm 1040 line 3a → 0/15/20% rate
Income
6 Royalties
Box 6
RoyaltiesSchedule E, Part I
Income
7 Net Short-Term Capital Gain (Loss)
Box 7
Net Short-Term Capital Gain (Loss)Schedule D, Part I
Income
8 Long-Term Capital Gain (Loss)
8a
Net Long-Term Capital Gain (Loss)Schedule D, Part II
Income
8b
Collectibles (28%) Gain (Loss)Schedule D
Income
8c
Unrecaptured Section 1250 GainSchedule D unrecaptured 1250 worksheet → 25% rate
Income
9 Net Section 1231 Gain (Loss)
Box 9
Net Section 1231 Gain (Loss)Form 4797, Part I
Income
10 Other Income (Loss) - Codes
10A
Other Portfolio Income (Loss)Schedule E
Income
10C
Section 1256 Contracts & StraddlesForm 6781
Income
11 Section 179 Deduction
Box 11
Section 179 DeductionForm 4562 → limited to shareholder's business taxable income; excess carries forward
Deduction
12 Other Deductions - Codes
12A
Cash Contributions (60%)Schedule A → charitable deductions passed through to shareholder
Deduction
12B
Cash Contributions (30%)Schedule A
Deduction
12C
Noncash Contributions (50%)Schedule A
Deduction
12G
Investment Interest ExpenseForm 4952
Deduction
12J
Section 59(e)(2) ExpendituresR&D costs eligible for 10-year amortization election
Deduction
12K
Excess Business Interest ExpenseForm 8990 → §163(j) interest limitation carry forward
Deduction
12V
Other DeductionsCatch-all; see supplemental statement
Deduction
13 Credits
13A
Low-Income Housing Credit (Pre-2008)Form 8586
Credit
13C
Qualified Rehabilitation Expenditures (Rental)Form 3468 → historic rehab credit
Credit
13P
Research Activities CreditForm 6765 → §41 R&D credit
Credit
15 AMT Items
15A
Post-1986 Depreciation AdjustmentForm 6251
AMT
15B
Adjusted Gain or Loss (AMT)Form 6251
AMT
16 Items Affecting Shareholder Basis
16A
Tax-Exempt Interest IncomeIncreases stock basis; not income to shareholder
Info
16B
Other Tax-Exempt IncomeIncreases stock basis
Info
16C
Nondeductible ExpensesReduces stock basis (after AAA) → meals disallowed portion, fines, etc.
Info
16D
DistributionsReduces stock basis; taxable to extent exceeds basis (IRC §1368)
Info
16E
Repayment of Loans from ShareholdersMay restore loan basis if previously reduced by pass-through losses
Info
17 Other Information - Codes
17A
Investment IncomeForm 4952
Info
17B
Investment ExpensesForm 4952
Info
17V
Section 199A Information§199A QBI deduction → QBI from S-corp, W-2 wages, UBIA; used on Form 8995 or 8995-A
Deduction
17W
Other InformationCatch-all; see supplemental statement
Info