Partner'S Instructions For Schedule K-1 (Form 1065-B) - Partner'S Share Of Income (Loss) From An Electing Large Partnership (For Partner'S Use Only) - 2003
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
1003
2 0
Department of the Treasury
Internal Revenue Service
Partner’s Instructions for
Schedule K-1 (Form
1065-B)
Partner’s Share of Income (Loss) From an Electing Large Partnership
(For Partner’s Use Only)
Section references are to the Internal Revenue Code unless otherwise noted.
Sale or Exchange of
and elections affecting partnership
Change To Note
income are made by the electing large
Partnership Interest
partnership. For limited partners, income
Under the Jobs and Growth Tax Relief
Generally, a partner who sells or
and other items from the partnership’s
Reconciliation Act of 2003, the general
exchanges a partnership interest in a
trade or business and rental activities are
tax rates applicable to net capital gain for
section 751(a) exchange must notify the
individuals have been reduced. The new
treated as being from a trade or business
partnership, in writing, within 30 days of
gains rates also apply to qualified
that is a single passive activity. These
the exchange (or, if earlier, by January 15
dividend income under new section
items are reported in boxes 1, 3a, 3b, and
of the calendar year following the
1(h)(11). The new rates apply to
5, with most credits being reported in
calendar year in which the exchange
installment payments received after May
boxes 7 and 8. General partners must
occurred). A “section 751(a) exchange” is
5, 2003. Schedule K-1 has been revised
make their own determinations as to
any sale or exchange of a partnership
to take into account the partner’s shares
whether the activities are passive for
interest in which any money or other
of these gains. The qualified dividends
them. Therefore, partnership items from
property received by the partner in
will be reported as a separately stated
trade or business, rental real estate, and
exchange for that partner’s interest is
item in box 9 of Schedule K-1.
other rental activities are separately
attributable to unrealized receivables (as
reported for each activity in box 9.
defined in section 751(c)) or inventory
General Instructions
items (as defined in section 751(d)).
Income, etc., from other activities
(investment and portfolio income and
The written notice to the partnership
Purpose of Schedule K-1
deductions) are reported in boxes 2, 4a,
must include the names and addresses of
The partnership uses Schedule K-1 to
4b, and 6 for both limited and general
both parties to the exchange, the
report your share of the partnership’s
partners.
identifying numbers of the transferor and
income, credits, deductions, etc. Keep it
(if known) of the transferee, and the
for your records. Do not file it with
exchange date.
Errors
your tax return. The partnership has filed
An exception to this rule is made for
a copy with the IRS.
You must report partnership items shown
sales or exchanges of publicly traded
You are liable for tax on your share of
on your Schedule K-1 (and any attached
partnership interests for which a broker is
the partnership income, whether or not
schedules) the same way that the
required to file Form 1099-B, Proceeds
distributed. Include your share on your tax
From Broker and Barter Exchange
partnership treated the items on its return.
return if a return is required. Use these
Transactions.
If you believe the partnership has made
instructions to help you report the items
an error on your Schedule K-1, notify the
If a partner is required to notify the
shown on Schedule K-1 on your tax
partnership. Do not change any items on
partnership of a section 751(a) exchange
return.
your copy of Schedule K-1. Generally, an
but fails to do so, a $50 penalty may be
The amount of loss and deduction that
adjustment to correct an error will take
imposed for each such failure. However,
you may claim on your tax return may be
no penalty will be imposed if the partner
effect for the tax year in which the
less than the amount reported on
can show that the failure was due to
partnership actually makes the
Schedule K-1. It is the partner’s
reasonable cause and not willful neglect.
adjustment. However, if the error involves
responsibility to consider and apply
a change to your distributive share of a
any applicable limitations. See
Nominee Reporting
partnership item, the partnership should
Limitations on Losses, Deductions,
file an amended partnership return and
Any person who holds, directly or
and Credits beginning on page 2 for
indirectly, an interest in a partnership as a
send you a corrected Schedule K-1.
more information.
nominee for another person must furnish
Electing Large
a written statement to the partnership by
If the treatment on your original or
the last day of the month following the
amended return is inconsistent with the
Partnerships
end of the partnership’s tax year. This
partnership’s treatment, you may be
This partnership has elected simplified
statement must include the name,
subject to the accuracy-related penalty.
reporting requirements intended to make
address, and identifying number of the
This penalty is in addition to any tax that
it simpler for you to report your share of
nominee and such other person,
results from making your amount or
partnership income, credits, deductions,
description of the partnership interest held
treatment of the item consistent with that
etc. Generally, income, capital gains,
as nominee for that person, and other
shown on the partnership’s return. Any
credits, and deductions are combined at
information required by Temporary
deficiency that results from making the
the partnership level so that the number
Regulations section 1.6031(c)-1T. A
amounts consistent may be assessed
of partnership items separately reported
nominee that fails to furnish this
immediately.
to partners is reduced. Most limitations
statement must furnish to the person for
Cat. No. 26141W
ADVERTISEMENT
0 votes
Related Articles
Related forms
Partner's Instructions For Schedule K-1 (form 1065-b) - Partner's Share Of Income (loss) From An Electing Large Partnership (for Partner's Use Only) - 2016
Financial
Partner's Instructions For Schedule K-1 (form 1065-b) - Partner's Share Of Income (loss) From An Electing Large Partnership (for Partner's Use Only) - 2001
Financial
Partner's Instructions For Schedule K-1 (form 1065-b) - Partner's Share Of Income (loss) From An Electing Large Partnership (for Partner's Use Only) - 2009
Financial
Partner's Instructions For Schedule K-1 (form 1065-b) - Partner's Share Of Income (loss) From An Electing Large Partnership (for Partner's Use Only) - 2007
Financial
Partner's Instructions For Schedule K-1 (form 1065-b) - Partner's Share Of Income (loss) From An Electing Large Partnership (for Partner's Use Only) - 2011
Financial
Partner's Instructions For Schedule K-1 (form 1065-b) - Partner's Share Of Income (loss) From An Electing Large Partnership (for Partner's Use Only) - 2004
Financial
Partner's Instructions For Schedule K-1 (form 1065-b) Draft - Partner's Share Of Income (loss) From An Electing Large Partnership (for Partner's Use Only) - 2011
Financial
Partner's Instructions For Schedule K-1 (form 1065-b) - Partner's Share Of Income (loss) From An Electing Large Partnership (for Partner's Use Only) - 2002
Financial
Related Categories
Parent category: Financial