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PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4514
Experience:  35 years tax experience, including four years at a Big 4 firm.
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I need some help with K1 reporting Anyone online able to

Customer Question

I need some help with K1 reporting
Anyone online able to help ?
Submitted: 1 year ago.
Category: Tax
Expert:  PDtax replied 1 year ago.

Hi. I'm PDtax. I can assist.

I am working on another project, but can assist shortly. Can you post your question?

Customer: replied 1 year ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Customer: replied 1 year ago.
first off - is our communication on a blog or similar - or is it private between you and myself ?Thx
Expert:  PDtax replied 1 year ago.

For a private chat, I will need to set up a private link, which we do via an Offer of Additional Service.

Secondly, I can and will call, but I am working on another project right now, and will get to you shortly.

Customer: replied 1 year ago.
Customer: replied 1 year ago.
Be back in 30 minutes
Expert:  PDtax replied 1 year ago.

Hi again. Can you let me know what kind of assistance you need, so I can price the project? I suspect you also need assistance right now. Please advise.

Customer: replied 1 year ago.
I am lost on this website
Not sure if you are getting my messages or not
Keep getting sent back to opening page or this page where I do not see our last replies
Are you still there - I know you said you are working on another project but just wondering if you are still on hold for me
Expert:  PDtax replied 1 year ago.

I am waiting for you to explain what you need, so I can evaluate your project. I just finished the other project.

Customer: replied 1 year ago.
Thanks ***** quess you did not get my message explaining my issue with the K1
I have a K1 from an LLC and it says in a notice from the Co that my taxable income should be lines 1,5,7 less lines 13I 13J 13T1 - 13T7, and line 20T1. According to the figures it is a not a gain but a loss, yet my tax program after I enter the data is only picking up the gain of line 1 and not factering in the deductions of the other lines
Customer: replied 1 year ago.
If you can - Let me know if you are getting these messages. Sent 2 already explaining what I need help with
Not sure if u are getting them
Expert:  PDtax replied 1 year ago.

I see what the issue is. There is a difference in terms. Your tax software needs to properly classify your LLC interest. If yours is a publicly traded partnership, for example, there might be limitations on items like 13l, portfolio deductions - other.

If yours is a working interest, you should make sure you classify your k-1 input to allow for both income and deductions.

That being said, the sum of the lines 1, 5, and 7 is total income, not taxable. You should be eligible for deductions like 13 L, but any expenses are treated as other miscellaneous deductions on schedule A. Usable if you itemize, but deductible there. check your Schedule A to see if they come forward.

Expert:  PDtax replied 1 year ago.

To check your math, check general partner on your K-1 input sheet. That will allow all the line items to go where they would be expected. Then, you can check to see what other classes of partner you might be, and what that does to your expense items.

Thanks again for your patience. Please rate my assistance when we are done. I'm PDtax.

Customer: replied 1 year ago.
The LLC is a PTP, my interest is not of a working one however
Checking general partner from limited partner does not change any thing in the program.
For whatever reason - my program is treating ;ines 1 5 7 as taxable income
My statement from the LC has no 13L
Only - 13T1
13T7AND 20T1
Expert:  PDtax replied 1 year ago.

Ok. PTP interests get their own special treatment. Lines 1 5 and 7 are correctly income items. Line 13T is for the domestic production activities deduction. Form 8903 picks those items out. These are not deductions against regular income, but instead a calculation of DPAD. I bet you have items in 14U as well. This is used to determine if there is a deduction from this activity that can be deducted against your ordinary income. If your partnership has no 14U items, Form 8903 may not compute at all. rendering these line 13 items useless.

Customer: replied 1 year ago.
Nothing for 14U
Customer: replied 1 year ago.
When will you back online
I have to get off right now and would like to continue later if possible
Thx PDTax
Expert:  PDtax replied 1 year ago.

That explains why the line 13 items are not brought forward into the return on 8903. These items are likely lost.

We can pick this up tomorrow if needed. PDtax