Skip to main content

Solutions

Products

Recommended products

Questions? We are here to help.
Contact us

Purchase

Questions? We are here to help.

Resources

Partner information and Schedule K-1

Partner Schedule K-1, Part III, Line 1 incorrect

The Schedule K-1, Part III, Line 1 values for Return partners typically come from one or more of 3 sources.

Default ratios

By default, your return’s Tax Form partners will calculate their Sch K-1 Part III Line 1 by multiplying the 1065 Sch K Line 1 by the partner’s default ratios.
  1. Review your Sch K values. Go to the folder
    Tax Forms
    ,
    Federal
    ,
    1065 - US Partnership Return of Income
    .
  2. Go to the Page 5, which is the
    Schedule K
    .
  3. The
    Line 1
     description is
    Ordinary business income (loss) (page 1, line 23)
    . You need to review the
    Page 1
     of the Form 1065 if the
    Sch K
    ,
    Line 1
     is incorrect here.
  4. Review your default allocation ratios. Go to the folder
    Organizer
    ,
    Partner Information
    ,
    Partner by Partner Data
    .
  5. In the folder
    Columnar Partner Entry
    , go to the
    Ratios\Units
     tab.
  6. Review and change any of your default Ratios that are listed in the
    Partners’ Ratios or Units
     section.
  7. Do a full recompute when you finish your changes.

Schedule K

The 2nd method for populating the Sch K-1 Line 1 in Tax Forms is from the Organizer section for the Schedule K.
  1. Go to the folder
    Organizer
    ,
    Schedule K
    , and
    Income Summary
    .
  2. In the
    Income Summary
     tab, the
    Schedule K Line References
     begin with Line
    1 Ordinary business income (loss)
    . Entering a value and special allocation code here can update your Sch K-1 Part III Line 1.
  3. Do a full recompute when you finish your changes.
    note
    There is a
    Warning
     here that states "
    If you want to enter special allocation code on the above field to specially allocate Schedule K-1, line 1, you should not enter special allocation codes on any screen on Organizer | Ordinary Income and Deductions | Income Summary, or Organizer | Ordinary Income and Deductions | Deductions Summary. Otherwise, the amount on Schedule K-1, line 1 might be over allocated.
    "

Pass through entities

The 3rd method for populating the Sch K-1 Line 1 in Tax Forms is from the Organizer section for Pass Through Entities.
  1. Go to the folder
    Organizer
    ,
    Activity Information
    , and
    Pass-Through Entity
    .
  2. Either open an existing Pass Through Entity entry, or select
    Add new Pass-Through Entity
     to enter a new Pass Through.
  3. Go to the
    Pass-Through Entity Activity,K-1 Line, Lines 1-15
     tab.
  4. Review the entries under the
    Income (Loss)
     section for the Schedule K-1
    Line 1 Ordinary income (loss) from pass-through entities
     line. You can use an amount and allocation code here.
  5. Do a full recompute when you finish your changes.
If the amounts are still not allocated to the Tax Forms properly based on your Organizer entries:
  1. Go to
    Organizer
    ,
    Partner Allocations Enabled
    .
  2. Select the
    Missing Partner K-1 Amounts
     button.
  3. Do a full recompute when you finish your changes.

This article applies to:

  • PRODUCT: GoSystem Tax RS
  • Return type: 1065 Partnership
  • Subject: Partners

error-icon

Triva isn't available right now.

Check out the support page for our phone number and hours

error-close