Reporting Partnership K-1s on Form 1040: Tax Basis Capital, Built-In Gains, and Step-Ups

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A

Conducted on Thursday, February 4, 2021

Recorded event now available

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Program Materials

This webinar will review the recent changes made to Schedule K-1 (Form 1065) and guide practitioners in reporting the individual line items on individual income tax returns.

Description

Although practitioners have grasped many of the changes to the Schedule K-1 (Form 1065) resulting from the recent tax reform, the IRS continues to make significant changes to this schedule. Negative tax basis capital reporting is now required, built-in gains and losses are included, and Section 743(b) basis adjustment amounts have all been added to the K-1. These are only three of the multiple changes made recently to this schedule.

Even in the past, correctly reporting K-1 activity was challenging. To some degree, the changes are welcome, providing tax professionals with information that some felt was necessary and lacking. Accurately reporting the information from a K-1 is critical to calculating a taxpayer's taxable income, carryforwards, and basis correctly.

Each of the 22 lines and respective amounts represents a separate reporting obligation. Line 20, Other Information, can be particularly troubling and now includes 23 reporting options from A to AH.

Listen as our panel of experts reviews the changes made to Schedule K-1 for flow-through entities due to the recent tax reform and the latest changes made to the schedule. They will explain the significance of each box and where and how each is reported on the taxpayer's Form 1040.

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Outline

  1. Income items, Lines 1-11
  2. Deductions and losses
  3. Other reporting items
  4. Section K: recourse, non-recourse debt, and QNR liabilities
  5. Capital account reporting
  6. Additional reporting obligations

Benefits

The panel will review these and other important issues:

  • Recent changes made to Schedule K-1
  • Reporting differences based on liability type
  • Where to report box 11, Other Income (loss) items on the 1040
  • The effect of tax basis capital balances on 1040 reporting

Faculty

Coppinger, Terence
Terence Coppinger
Principal
Cedar Point Accounting

Mr. Coppinger has been advising clients in the areas of tax information reporting and IRS practice and procedure for...  |  Read More

Franco, John
John Franco, CPA
Tax Senior Manager
Deloitte Tax

Mr. Franco has over 10 years of experience at Deloitte working on partnership transaction planning, structuring, due...  |  Read More

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