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Screen K1Misc - Partner Schedule K-1 Items (1065)
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Overview
Partner Percentages
Profit sharing - beginning / ... / Loss sharing - ending
The application defaults the beginning-of-year and end-of-year profit and loss percentages for Schedule K-1, Item J to the first and last day a partner owns an interest in the partnership, using information entered in the Changes of Ownership window in Partner Data Entry. To use a different percentage in the Beginning or Ending column, select the Ptr Alloc buttons. To display text, such as Various or Formula, use the Description fields.
note
Electronic filing guidelines don’t allow text in the partner percentage fields. The calculated percentage will be used in the electronic file.
Ownership of capital - beginning / ending
The application displays the beginning-of-year and end-of-year capital percentages for Schedule K-1, Item J as follows.
- By default, the application displays the ownership of capital percentages based on the first and last day a partner owns an interest in the partnership, using information entered in the Changes of Ownership window in Partner Data Entry.
- If theCompute partner end-of-year ownership percentage based on ending capitalfield in this screen is marked, the application calculates the end-of-year capital percentage based on the partners' share of ending capital as of the last day of the partnership's tax year.
- To use a different percentage in the Beginning or Ending column, select the Ptr Alloc buttons. To display text, such as Various or Formula, use the Description fields.
note
Electronic filing guidelines don’t allow text in the partner percentage fields. The calculated percentage will be used in the electronic file.
Deductions - beginning / ending
The application defaults the beginning-of-year and end-of-year deductions percentages for Schedule K-1 (Form 8865), Item E to the Profit percentage entered in the Changes of Ownership window in Partner Data Entry on the first and last day a partner owns an interest in the partnership. To use a different percentage in the Beginning or Ending column, select the Ptr Alloc buttons. To display text, such as Various or Formula, use the Description fields.
note
- Electronic filing guidelines don’t allow text in the partner percentage fields. The calculated percentage will be used in the electronic file.
- These fields apply only to Form 8865.
Display Schedule K-1 partner percentages using the partnership's tax year
The application defaults the beginning-of-year and end-of-year profit, loss, and capital percentages for Schedule K-1, Item J to the first and last day a partner owns an interest in the partnership, using information entered in the Changes of Ownership window in Partner Data Entry. For example, if a partner joins the partnership after the beginning of the partnership's tax year, the beginning-of-year percentages displayed on Schedule K-1 will be the partner's percentages as of the day the partner joins the partnership, not 0 percent. Enter
X
to display the partners' percentages as of the beginning and end of the partnership's tax year. In the previous example, if you enter X, the beginning-of-year percentages on Schedule K-1, Item J for the new partner will all be 0 percent.To automatically display Schedule K-1 percentages using the partnership tax year for all new clients, mark the
Display Sch K-1 percents using partnership tax year (K1Misc Screen)
checkbox in the Return Presentation tab in the New Client Options dialog. To open this dialog, choose Setup and then 1065 Partnership, and select the New Client Options button.Compute partner end-of-year ownership percentage based on ending capital
Enter
X
to automatically calculate Schedule K-1, Item J, Capital based on each partner's ending capital account balance.The application calculates the end-of-year capital percentage as follows.
- If all partners' ending capital balances are greater than or equal to zero, the application calculates the capital percentage for each partner by dividing each partner's share of ending capital by the sum of ending capital for all partners.
- If any partner's ending capital is less than zero, the application calculates the capital percentage for each partner based on whether the partner's ending capital is greater than or less than zero.
- For any partner whose ending capital is less than or equal to zero, the application calculates the capital percentage as 0.000000 percent.
- For any partner whose ending capital is greater than zero, the application calculates the capital percentage by dividing the partner's share of ending capital by the sum of ending capital for all partners whose ending capital is greater than zero.
To automatically calculate Schedule K-1, Item J for all new clients, mark the
Compute partner's ownership percent based on ending capital (K1Misc Screen)
checkbox in the Return Presentation tab in the New Client Options dialog. To open this dialog, choose Setup and then 1065 Partnership, and select the New Client Options button.Partner Share of Liabilities
Include supplemental liability schedule with Schedule K-1?
By default, the application generates the at-risk and not at-risk supplemental schedule on Schedule K-1, Other information when you allocate a not at-risk liability to a partner. Use the drop-down list to force the application to always print or to never print.
Accounts payable rounding adjustment classification
By default, the application automatically classifies the accounts payable rounding adjustment amount as a recourse liability that is at-risk. Enter the accounts payable rounding adjustment code to classify the adjustment as a different type of liability.
Other Information
Primary activity and unit for data share by activity
Enter the partnership’s primary activity and unit number. When data sharing by activity into 1040 and 1120, the application uses this information to determine which unit will be the primary unit for the combined basis calculation.
note
The application allows you to share Schedule K-1 financial data among all 1040, 1041, 1120, and 1065 clients automatically. (The application can transfer financial data
into
1120C clients, but not out of
these clients.) For details, see Data sharing overview.