Separately Reportable Items on Partnership Return – Paul Gaulkin CPA

two people shaking handsAny 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

Soil and water conservation expenditures

10. 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.

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