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Category: Tax
Satisfied Customers: 12023
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Filing taxes with Schedule K1 (form 1965)

Customer Question

Filing taxes with Schedule K1 (form 1965)
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
I need assistance filing my taxes with schedule K1 form 1065. I bought stocks with a partnership and they sent me a schedule K1 but 1) I'm not quite sure if the information in it is correct, 2) I don't know how to file for this
Customer: replied 1 year ago.
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Expert:  PDtax replied 1 year ago.
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Customer: replied 1 year ago.
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Expert:  Lane replied 1 year ago.
Hi,...I am a different expert. ...I can help you here....The K-1 is prepared by the partnership's tax preparers to distribute to owners their portion of the income, loss, and deductions....Not UNlike a 1099 form received that shows contractor income, you don't file the K-1 with your return. Instead, (as is sounds like you understand) you use the data on the form to fill out portions of your personal tax return....In terms of your not being sure that the information is correct, that's a VERY hard thing to accomplish. The information has already been sent to IRS and is a direct result of th operations of the partnership....You can always take legal action or report the partnership to IRS if you believe there are problems. And that work's best if you can get the other investors ("partners," like you) to agree and join the action....Now, in terms of how this is re[ported on your taxes, not only do you need to report net profit or loss, but some financial data must be tracked individually....Partnerships have to report certain income and expenses separately from the net profit or loss amount. And these items flow through to you and "maintain their character," (meaning that you report tem just as if you WERE the partnership ... this is because partnerships don't pay taxes ... they are "pass-throughs" ... meaning that they pass everything through to the partners.
Expert:  Lane replied 1 year ago.
here's a list of those items that can show up (depending on the operations of the partnership) on the k-1... Section 1231 gains and losses,Net short-term capital gains and losses,Net long-term capital gains and losses,Dividends eligible for the dividends received deduction (if a shareholder is a C-Corporation),Charitable contributions,Taxes paid to a foreign country,Tax-exempt interest and related expenses,Investment income and expenses,Amounts previously deducted, such as bad debts,Real estate income and expenses,Section 179 deductions,Tax credits, andNon-deductible expenses, such as 50% of meals and entertainment expenses.
Expert:  Lane replied 1 year ago.
If you are using a tax software package (such as turbotax) you will be able to enter each of the boxes from the K-1 directly into the software, then it will generate the appropriate schedules (including schedule E) and the "flow the items to the places they belong on the return _ there may also be other forms included such as depreciation, or may be capital gains. if the PARTNERSHIP had any depreciation or capital gains....
Expert:  Lane replied 1 year ago.
Hopefully this can fork a foundation for helping you with let. Let me know what questions you have from here....Please let me know how else I can help here....If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the faces or stars on your screen, and then clicking “submit I know it takes an extra step, but JustAnswer won’t credit us for the work until you rate....Let me know!Lane……I hold a law degree (JD, Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial, Social Security/Medicare, estate, corporate, both for-profit and non-profit, and tax advice, since 1986.