Late Schedule K-1 with no effect on tax due?

The AGI should have increased by $2 in the calculations. Make sure it did so that you can be sure you entered the right fields.

If this were me if there was only box 5 and 20 I'd ignore it. If your taxable income is under 100k, it's possible that the extra $2 makes no difference at all, or it puts you in the next range and you'd owe at most $14. I kind of wish they just got rid off the tables!

But line 12 is big. That's depreciation. It goes on form 4562. It will then go to Schedule E and reduce your income (line 1 of form K-1). However, this looks like a publicly traded partnership. If the ETF is a trading ETF it might be able to be classified as an active activity (this was the case for UNG) so the loss is allowed. Otherwise the loss is allowed up to the value of line 1 income, and the remainder is carried forward to next year and until you sell the ETF.

Also look for if the original or amended K-1 came with instructions on what to do. Specifically look for whether there is considered an active activity, and what to do with line 12.

This was for the ETF UMM (macroshares housing up). TurboTax actually put the $843 on 1040-line 23 : Other expenses with description "Miscellaneous expenses", but it was under the 2% exclusion so there was no effect on the tax due. Yes the AGI increased by $2 for the extra schedule B interest but no change in tax due (still in the same table range I guess). The $843 is listed in the K-1 as code "K" "Deductions-portfolio 2% floor" this corresponds to code "K" which is also a field entered into Turbo tax so I assumed it did the right thing. I also bought and sold the ETF in 2009 so if it was deductable depreciation I would probably have to add it back into the capital gain.

Worst case: There is something relevant on the K-1 that you didn't tell us that needs to be reported on an amended return.

Less bad case: There's something about the partnership which will eventually attract the IRS's attention and even though you are correct that there is no additional tax due, you will spend a lot of time and effort persuading the IRS auditor of that fact..

Why do you want to wait? You minimize the chances of issues by amending as soon as possible.

Obviously, I disagree with removeps. On this issue at least, I'm more conservative than he.

I very recently amended my 2009 return for the homebuyer's credit only (and haven't yet received the check). In addition to thinking that another 1040x may delay the credit-check, I haven't figured out how to amend the amended return.

When I amended for the Form 5405, for the mailing, TurboTax only generated 1040x + 5405. It did not update/generate (and I didn't mail) a new 1040 (hopefully this is correct - please confirm). Now if I amend again I'm not sure if I need to incorporate the 5405 credit into the 1040 first (in other words create a full return as if the 5405 credit was there in the original filing), then add the Schedule E, and extra interest in Sched B, etc, then basically mail the 1040x, 1040, etc (basically most of my return plus 1040x).

Yes, you're right. I assumed this was a 1065 K-1 for which line 12 is section 179 (and there are no letter codes). But it looks like it is

1120-S K-1 (and code K exists).

It isn't depreciation if this is a 1120-S K-1.

When you sell your ETF the company may give you a statement showing what your capital gain and 25% business gain is.

This stuff is so complicated that it might be good to stay away from these ETF's in your regular account. Even in ETF's in your IRA can be complicated because of unrelated business income (so find out if there is any).

If they write to you you can respond with the amended tax return then. Do the amended return now as the details are fresh in your head.

That is correct. A 1040 is not necessary.

Sorry, I don't know much about second amended returns. I think they are based on the original, and in the second one you wouldn't include the 5405 as it was included with the first -- but this is only guessing.

Each additional 1040X is based on the previous filed return. In this case a second 1040X is based on the first 1040X.

So what if they receive the second 1040X before the first one has been processed? They will get confised, but the procedure is correct.

Re. 1040x I guess a fundamental point of confusion I have is whether you ever send a 1040x plus an updated 1040 form, or if the 1040x replaces the

1040? E.g. if I update schedule B, changing interest income, do I just file 1040x + schedule B with the change in AGI reflected only on the 1040x or do I need to submit a new 1040 too? If you don't update the 1040 then for the 2nd amend I just need to add the Schedule E, updated Schedule B, and reflect the new AGI on 1040x. If I need to update the 1040 then there's a question about whether or not I need to include the changes in the first 1040x-amend in the updated 1040 for the 2nd amend ( include the 5405 credit on the new 1040).

Well, I should never say never. But in almost every case I would not send a 1040 with a 1040X. It can confuse the IRS.

If for some very rare reason I think I need to send a 1040, I would mark the 1040 in Red on top "NOT TO BE INPUT - To Explain 1040X Only" or similar words.