MGT 135 Lecture Notes - Lecture 11: Ordinary Income, Payroll Tax
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2: partnership reporting requirements continued, income(loss) is allocated among the partners according to the partnership agreement. E. g. partner a = 60%, b = 30: partners include their share of income on their respective returns, partners are pass through entities, separately statyed itemsare reported on schedule k of the form. 1065 and allocated to the partners on their personal return e. g. gain/losses on sale of securities. charitable donations. See schedule k page 10-20 and schedule k-1 on page 10-23. 3: schedule k is the partner"s distributive share items, attached to individual income tax returns, along with schedule k-1 e. g. a partner"s share of income deductions (partner at at 60%) There will be a unique k -1 for the individual partner. 4: tax consequences to individual partners, 1. Partnership issues a k-1 to each partner, has the partner"s share of the income, credits, and deductions.