TAX-AIDE Tax Preparation Course Introduction Pub 4491 – Part 1.
TAX-AIDE Schedule K-1 Pub 4491 – Part 3 NTTC Training – 2014 1 Entire Lesson.
14
TAX-AIDE Schedule K-1 Pub 4491 – Part 3 NTTC Training – 2014 1 Entire Lesson
-
Upload
abraham-james -
Category
Documents
-
view
216 -
download
0
Transcript of TAX-AIDE Schedule K-1 Pub 4491 – Part 3 NTTC Training – 2014 1 Entire Lesson.
TAX-AIDE
TAX-AIDE
Schedule K-1
Pub 4491 – Part 3
NTTC Training – 2014 1
Entire Lesson
TAX-AIDE
Schedule K-1
● Reports taxpayer’s share of income, other distributions, deductions, and credits from Estates and Trusts (Form 1041) Domestic Partnerships (Form 1065) S Corporations (Form 1120S)
● K-1s for Foreign Partnerships (Form 8865) are out of scope
NTTC Training – 2014 2
TAX-AIDE
Intake and Interview
● Look for K-1s
● Verify in scope!
NTTC Training – 2014 3
TAX-AIDE
Schedule K-1
● In-scope K-1s contain ONLY Interest income (taxable and tax-exempt) Dividends (ordinary and qualified) Capital gains or losses (long or short) Royalty Income Foreign Tax paid for passive activities
● Anything else is Out-of-Scope
NTTC Training – 2014 4
TAX-AIDE
Schedule K-1 (Form 1041)
NTTC Training – 2014 5
Note: may be 2013 form but be 2014 income for taxpayer when entity is on a fiscal, not calendar, year.
TAX-AIDE
Schedule K-1 (Form 1165)
NTTC Training – 2014 6
TAX-AIDE
Schedule K-1 (Form 1120S)
NTTC Training – 2014 7
TAX-AIDE
K-1 Interest Income
● Also look for exempt interest income
● Box number varies by form
● Look on the back of the form for the code descriptions
NTTC Training – 2014 8
TAX-AIDE
Reporting Income from K-1
● Do NOT use TaxWise K1 worksheet Interest or Dividend Stmt – list payer as
[Company] K1 Net Capital Gain/Loss – Sch D Line 5 for
short-term, line 12 for long-term using scratch pad
NTTC Training – 2014 9
Pub 4012, pg D-3 et seq
TAX-AIDE
Reporting Income from K-1
Schedule E for royalties Foreign Tax paid on Form 1116
NTTC Training – 2014 10
Pub 4012, pg D-27
TAX-AIDE
Foreign Tax on K-1
● Box number varies by form
● Must be coded as Passive income
● Will be covered in later lesson
NTTC Training – 2014 11
TAX-AIDE
Quality Review
● Verify in scope
● Verify tax year
● Verify entries On respective worksheets and forms Not on K-1 in TaxWise
NTTC Training – 2014 12
TAX-AIDE
Exit Interview
● Will need to explain if out of scope
NTTC Training – 2014 13
TAX-AIDE
Schedule K-1
NTTC Training – 2014 14
