Hi everyone! In this lesson, we're going to really get into the parts of Schedule K that will matter the most to you and how to treat them as you're building financial statements and entering this information into Halon. We're going to drill on Schedule K a bit here because it is very important, as I said in my 1120s lesson. Schedule K can be a bit tricky, and I want you to understand what it is. Now rest assured, Halon is going to do all this work for you, and the CPA tax team reviews all of this, so you're not actually going to be completing any Schedule K's. But we want to make sure that you're doing the bookkeeping in a manner such that Halon can read it correctly and be efficient in the preparation of its tax return. And if clients ever ask you a question about it, I want you to have some idea of what these things are, why they're there, and doing a deep dive is going to help us do that. Let me first start with a slide that I used in the last lesson when we were talking about the Schedule K and the 1120s forms. Let me go back to this slide and refresh our memory about how the Schedule K works. So, this is it. Remember, I've got an income statement on the left here that has sales, interests, and dividends. And then, as we understand it, it breaks out into two different pieces. Just to recap, in the 1120s, some of the items are reported on the Schedule K. Anything that is not reported on the Schedule K is reported on page one of the 1120s. These items that go into Schedule K are easy to understand once you...
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1065 schedule k-1 Form: What You Should Know
What's the Difference Between a Partnership Return and a Partnership Return? A return (Form 1065) is prepared by the Partnership Tax Return Preparation Center within an office at the Partnership Tax Center. A partnership return is prepared by the Business and Tax Partner Tax Center in partnership with the Office of the Commissioner (OTC). OTC does not have its own separate partner What is the Partner's Legal Relationship With the Partnership Tax Center? The Partnership Tax Center performs a wide range of services to businesses (including accounting and tax services). Partnerships, in return for the partnership tax deduction, typically pay fees or provide services to the partnership tax center. Partnerships' tax advisor meets with the partnership tax officer each calendar year to discuss the partnership tax return. Why Don't Partner Get a Copy of the Paperwork? Partnership tax returns (Form 1065) are completed at the partnership's tax center. But for the business partner to complete and file Schedule K-1 to the partnership, they typically need the following documents: A copy of the partnership tax return (Form 1065). A supporting Form SS-4. A letter from the partnership stating the partnership's tax responsibilities. What Is Schedule K-1 Used For? Schedule K-1 is used for the partnership to report the partnership tax deductions and other tax information, such as the following: Shareholder Shares Shareholders, whether their personal tax liability is reduced by a partner or any partner, generally report on their own returns in one of the following places: Schedule E for partnership income tax return (Form 1065) Form 1065 for partnership income tax return (Form 1065) Form W-2 and Form W-3 for owner-employee of a partnerships (Form W-2) Form 1065 and Form 1065-E for partners (Form 1065) The 1035 exchange What Is the Schedule K-1 Form for Shareholder Shares? Form SS-4 for the partnership (Form 1065) is a document that is used to report the partnership tax deductions to the IRS. Schedule K-1 Form 1065 for a partnership (Form 1065) is a form that is used by the Business and Tax Partner Tax Center to report the partnership tax deductions to the IRS. If neither partner filed a Schedule K-1 for the partnership, the partner will not be allowed to reduce their tax liability for a given year by relying on Schedule K-1.
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Video instructions and help with filling out and completing Form 1065 schedule k-1
