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K1 Ordinary Income (Loss) reporting.

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03-16-2009, 01:05 PM	#1
ddagsyn Registered User Join Date: Dec 2003 Posts: 20	K1 Ordinary Income (Loss) reporting. I have to file a Schedule K-1 Form 1065 for 2008. Do i have to report the income or loss in Box 1 of Part 3 even if i did not sell any of my shares in 2008. Thanks

03-16-2009, 02:05 PM	#2
Puck Registered User Join Date: Jan 2007 Posts: 1,084	K-1 is your income/loss as the owner of those shares in the business. It's not about selling your shares, but about being a part-owner of a company, and having the income/loss of that company pass through to you. Sorry I can't offer details about line numbers and such -- I'm not a tax professional. __________________ "Wealth is the slave of a wise man. The master of a fool." -- Seneca

03-16-2009, 02:26 PM	#3
BlankenshipFP Harold Hecuba Productions Join Date: Sep 2004 Location: New Berlin, Illinois Posts: 934	If your partnership had a gross, it must be reported on line 3. It doesn't matter if you withdrew the funds from the partnership or not, that would only impact your degree of ownership. __________________ jb IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication (or in any attachment).

03-16-2009, 03:22 PM	#4
ddagsyn Registered User Join Date: Dec 2003 Posts: 20	This is what the tax packages says that is throwing me off. I did not dispose any interest in the partnership. The sum of line 1 to 10 on my schedule are a net loss. "if you had a net passive loss i.e the sum of lines 1 thru 10 for any activity is negative generally you should not report a loss from that activity on your federal or state tax return unless you disposed all your interest in the XXX prior to Jan 1 09 in a fully taxable transaction." Thanks

03-19-2009, 07:11 AM	#5
BlankenshipFP Harold Hecuba Productions Join Date: Sep 2004 Location: New Berlin, Illinois Posts: 934	So, the point is that if you had a loss in the partnership, you would not report the loss against ordinary income - as the passive activity loss can only be deducted against passive activity gains, unless you've disposed of your interest in the partnership altogether, which would result in a capital gain or loss. __________________ jb IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication (or in any attachment).

03-30-2009, 04:11 PM	#6
ddagsyn Registered User Join Date: Dec 2003 Posts: 20	Which probably means that i am not going to show a "business income " of zero on line 12 of my 1040 since i have disposed no shares in the partnership. line 12 - Business income or loss Thanks

04-06-2009, 07:32 AM

Dingobiscuit

No Disclaimer Necessary

Join Date: Feb 2005

Posts: 1,772

Quote:

Originally Posted by BlankenshipFP

So, the point is that if you had a loss in the partnership, you would not report the loss against ordinary income - as the passive activity loss can only be deducted against passive activity gains, unless you've disposed of your interest in the partnership altogether, which would result in a capital gain or loss.

Hey, Blank!

Good to see you in the April issue of Money magazine!

__________________
"A nickel ain't worth a dime anymore."

- Yogi Berra

04-07-2009, 09:03 PM	#8
BlankenshipFP Harold Hecuba Productions Join Date: Sep 2004 Location: New Berlin, Illinois Posts: 934	Thanks! I haven't seen it yet, but had heard about it... :0 __________________ jb IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication (or in any attachment).

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