Any item that may have to be treated differently by each partner must be separately stated. For example, some partners may be able to deduct charitable contributions that flow through from the partnership, but those that have already met the 50 percent AGI limit for contributions will have to carry over those contributions. Each partner’s share of these items is identified on the partner’s separate Schedule K-1 tax return.
The following items should be separately stated:
1. Short term capital gains and losses
2. Long term capital gains and losses
3. Section 1231 gains and losses
4. Charitable contributions
5. All portfolio items including dividend and interest income
6. Taxes paid or accrued to foreign countries and to possessions of the United States
7. Recoveries of bad debts, prior taxes, and delinquency amounts
8. Gains and losses from wagering transactions
9. Soil and water conservation expenditures10. Non-business expenses such as alimony payments
11. Medical and dental expenses of partners, their spouses, and dependents which may not be taken as partnership deductions under Code Section 703(a)
12. Credit for the care of certain dependents
13. Amounts representing taxes and interest paid cooperative housing corporations
14. Intangible drilling and development costs
15. Exploration expenditures incurred before 1970
16. Certain mining exploration expenditures
17. Income, gain, or loss to the partnership upon the distribution of property involving unrealized receivables and substantially appreciated inventory items
18. Expenses of certain depreciable assets
19. Tax preference items
20. Business credits
21. All items from separate passive activities, including real estate
22. Qualified production activity income
23. Form W-2 wages
As you can see this is a very long list of items that can be separately reported on a partnership return.
About Paul Gaulkin CPA
Paul Gaulkin is a Certified Public Accountant and enrolled with the U.S. Treasury to practice before the IRS. Mr. Gaulkin possesses unique technical knowledge in the process of securing relief for taxpayers nationwide with IRS and State tax problems. With an accounting degree from Florida International University, he is able to transform complex tax and accounting problems into easy to understand solutions.
