1NTTC Training 2009

SCHEDULE K-1

What is ‘In-scope’?How to Report in Tax Wise

2NTTC Training 2009

SCHEDULE K-1WARNING

During the interview look at all K-1s In-scope K-1s contain ONLY

Interest Income (taxable and tax-exempt) Dividends (ordinary and qualified) Capital gains or losses (long or short)

Everything else is Out-of-Scope

3NTTC Training 2009

SCHEDULE K-1

Reported to T/P by four types of entities Domestic Partnerships (Form 1065) Foreign Partnerships (Form 8865) Estates and Trusts (Form 1041) S Corporations (Form 1120S)

Must include all data on return Schedule K-1 not filed with return

4NTTC Training 2009

SAMPLE SCHEDULE K-1 (ABC)

5NTTC Training 2009

SCHEDULE K-1INTEREST AND DIVIDENDS

Interest Dividends –Ordinary and Qualified

Use the TaxWise Interest or Dividend Statement (Do NOT fill out K-1) List Payer as [Name of Company] K-1

See sample ABC K-1 (may vary)

6NTTC Training 2009

TaxWise Interest Statement Example (ABC K-1)

7NTTC Training 2009

TaxWise Dividend Statement Examples (ABC K-1)

K-1 Ordinary Dividends

K-1 Qualified Dividends

8NTTC Training 2009

SCHEDULE K-1CAPITAL GAINS OR LOSSES

Short term Long term

In TaxWise enter directly on Sch D (Do NOT fill out K-1) Short term – Line 5 Long term – Line 12 Direct entry provides proper tax

treatment of short or long term gains

9NTTC Training 2009

Schedule D Capital Gains/LossesDirect Entry from K-1