Integrating K-1s with Income Tax Return Preparation (INK1)

The instructions to Form 1065 now require partnerships to report each partner’s tax basis capital on their Schedule K-1 if the amount was negative at either the beginning or end of the year. All K-1’s will be on the tax basis for 2020. Additionally, the 2019 Form 1120S (as well as Form 1065) requires an S corporation to report whether it aggregated activities for Section 465 at-risk purposes or grouped activities for Section 469 passive activity purposes. This course reviews the new tax basis reporting requirements for partnerships and S corporation shareholders, as well as new issues associated with completing both Form 1065 K-1 and Form 1120S K-1.

• Partner basis reporting
• S corporation shareholder basis reporting
• How to comply with partner and S corporation shareholder reporting
• Recent changes on the partnership Form 1065, S corporation Form 1120S and K-1s for both forms
• Disclosure of additional information related to §704(c) transactions on the partnership Schedule K-1
• Guaranteed payments split on the partnership K-1 between those for capital and those for services
• What practitioners should know about 704(b) and 704(c)

• Comply with new requirements regarding partner and S corporation shareholder basis reporting