Schedule K1 reporting

"david" wrote

A K-1 reports your share of the business (in this case a partnership) income or certain expenses.

This form will show your share of income even if you bought into the partnership for a day (1/365ths of whatever percentage you owned).

So yes, you have to report the income, losses and expenses that are shown on your K-1 - just as you must show the income and withholding from your W-2.

For all the gory details, see this document:

in article snipped-for-privacy@41g2000yqf.googlegroups.com, david at snipped-for-privacy@hotmail.com wrote on 3/16/09 2:23 PM:

A K-1 shows income that has been earned by your partnership and is attributable to you because the partnership does not pay any tax, the partners do. You owe tax on this income, even if no cash was distributed to you. This adds to your basis in the partnership and reduces any future profit when you sell your partnership shares.

Uncompensated advice guaranteed correct or double your money back

Frank S. Duke, Jr. CPA Cincinnati, OH USA