Form 1040 - Schedule K-1 (Form 1065) Entity Information

To enter the income items from Schedule K-1 (Form 1065) in Tax Processors Plus Online, from the Federal Section of the tax return (Form 1040) select:

• Income Menu
• Other Income
• K-1 Earnings- Select BEGIN next to Schedule K-1 (Form 1065).

Part II - Information About the Partner

• Check here if the partnership is Foreign

Partnership Belongs To - If filing MFJ, select if the K-1 is for the Taxpayer or Spouse.

Part I - Information About the Partnership

Enter the partnership's name, EIN, and address.

Check the box if...

• This K-1 is from passive entity - Check this box if the taxpayer doesn't materially participate in the partnership, or if the partnership is involved in rental activity and the partner is not materially involved.
• There is an amount on line 2 of the K-1 and this is a non-passive entity and you materially participate - If the taxpayer's involvement in the partnership fits the definition of a "real estate professional", check this box.
• There is an amount on line 2 of the K-1 and you actively participate - If the taxpayer is actively involved in the rental activities of the partnership, check this box.
• All Investment is At-Risk - This box corresponds to the check box in column (f) of line 28 on Schedule E. It should be unchecked if the taxpayer has a loss from the partnership activity and has amounts that are not at risk. At-risk rules in most cases limit the amount of loss (including loss on the disposition of assets) the taxpayer can claim to the amount they could actually lose in the activity. When this box is unchecked, four boxes appear for the purpose of completing Form 6198.
• Entire Interest in Investment has been disposed - Check this box if the taxpayer has disposed of their entire interest.
• Basis Computation is Required - This question can be answered or ignored. It's a question that is relevant for S corp shareholders.
• K-1 is from a publicly traded partnership (PTP) - Check this box if Part I Item D is checked. Publicly traded partnerships are given different treatment as compared to other partnership interests.

Note: This is a brief guide on entering Schedule K-1 (Form 1065) in the individual income tax return in Tax Processors Plus Online. This is not intended as tax advice.

Additional Information:

Partner's Instructions for Schedule K-1 (Form 1065)

Tax Processors Plus Online - Form 1040 - Schedule K-1 (Form 1065) - Overview

Tax Processors Plus Online - Form 1040 - Schedule K-1 (Form 1065) - Income

Tax Processors Plus Online - Form 1040 - Schedule K-1 (Form 1065) - Deductions

Tax Processors Plus Online - Form 1040 - Schedule K-1 (Form 1065) - Credits