I am a little confused as to how to fill out schd K-1 along with the 1120S form.
In particular, the first entry in the schd K-1 is the ordinary business loss or income.
But the rest of the form asks for interest income, deductions, sec 179, which are ALREADY included in the ordinary business income or loss.
How come this double counting?
That's why I am confused.
Could someone please help?
How do I correctly fill out this form?
Thanks!
PM
>
>
>
>
>
>
>
>
>
No, it is not double counting, because those items are/should not be accounted for before ordinary income on page one. These are all separately stated items and are not to be included on line.... oh... what, 26? Ordinary income, anyway. (Just filed my own 1120S electronically today matter of fact.) ChEAr$, Harlan Lunsford, EA n LA
Please consult a local CPA or EA who specializes in small business taxes for help with this. You have a basic misunderstanding of the sub-chapter S corporation tax forms (1120S). Interest income, Section 179 depreciation deductions, charitable contributions, and certain other items are NOT included in the ordinary taxable business income (loss).
-- Charles M. Shanes, CPA Charles M. Shanes CPA, LLC Richmond, VA QuickBooks ProAdvisor Microsoft MPAN Member for SBA
based on your questions, you need to seek a CPA
___________________________________
-----> real address on hobokeni or hobokenx
Or an Enrolled Agent (EA) who specializes in business taxes. (grin!) ChEAr$, Harlan Lunsford, EA n LA
Have something to add? Share your thoughts — no account required.
Ask the community — no account required