Amended Returns

[Acownt4it]

already.
Man, jI ust finished the season with 10 extensions and I get in the mail today a note from a client with a K-1 included saying he thinks we will have to amend.
Well, DA !!!!

The K-1 is from a partnership and the Partner information is for my client's S-Corp. Now I have 2 amended returns to do.

Anyway, now I have a question for anyone who isn't on vacation yet, or when you get back.

Where do I enter this information for the K-1 on the 1120S? The K-1 looks like this:
Box 1-Ordinary Income $-9,062
Box 13-A Other Deductions $1
Box 17-A AMT Items $-70
Box 17-F* AMT Items $266
Box 18-C Tax exempt income and non deductible expenses $41

I am okay with Boxes 13-18, I am just not sure about Box 1-Ordinary Income. I am inclined to put on Line 5 of the 1120S. Does this sound right?

By the way, a BIG THANK YOU to everyone on the board this tax season. I love reading and learning about all the different issues posted.

[taxea]

Where to post K-1

K-1 info goes on the 1040. It should have come with instructions that detail which line ofr form of the 1040 it goes to

[Bill Tubbs]

Other Income

Well, "Other Income" (Form 1120S, line 5) is a catch-all, and when in doubt, let it catch it. This way it ends up on Form 1120S, Sch K, line 1, and then flowing through on K-1 (1120S) line 1 "Ordinary Income". Since it was coming out of the 1065 on Ordinary Income, it should flow into the 1120S as Ordinary Income, and then out of the 1120S on K-1 as Ordinary Income.

At least that's what I would do.

Disclaimer: Just shooting from the hip -- I have not had this situation occur, and thusly have not fully researched it.

Bill

[Acownt4it]

K-1 info goes on the 1040. It should have come with instructions that detail which line ofr form of the 1040 it goes to

The partner ID number is the S-Corp. Would I still put it on the personal return and not have it flow throught to the personal like Bill Tubbs explained?

I was thinking like Bill.

Man I thought the weird stuff was over for the year. No such luck.

[JoshinNC]

I think it goes on the 1120S

under ordinary income, as it was ordinary income to the partnership.

But, like Bill, just shooting from the hip.

[Bill Tubbs]

Who was the partner?

The partner ID number is the S-Corp. Would I still put it on the personal return and not have it flow throught to the personal like Bill Tubbs explained?

Who is the partner? If the 1120S is the partner, the income from the K-1(1065) goes on the 1120S -- which then gets broke out among the 1120S shareholders on the K-1(1120S). If an individual is the partner, the income from the K-1(1065) goes on that individual's 1040 directly.


Bill

[Matt Sova]

S-Corp partner

I have seen it reported in the Gross Sales of an S-Corp as well as Other Income of the S-Corp. It is Ordinary income, not Cap Gain, Int or Div, etc so as long as you report it as ordinary you are fine.

If there was CG, Int or Div income it would go to Schedule K and then get split out on the K-1's to the S-Corp owner.

Matt