Why is K1 income allocated to Interest Income in 1040?

Forum|Forum|2 years ago
March 20, 2024
3 replies
10 views

After importing K1/1065 info on a client's 1040, the income is allocated under Interest Income instead of Partner income. Is this a know issue? If so, is there a work around? This didn't happen on last year's return, the income from a Partnership LLC was allocated under "Rent, royalty, partnership, SCorp, trust -- not interest income.

Thanks in advance!

Renee

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George4Tacks

Level 15

What line numbers are on the K-1?

Line 5 goes on the Schedule B.

Answers are easy. Questions are hard!

R

renee8Author

Level 3

It's on line 2a after importing into the 1040.

sjrcpa

Level 15

If it's wrong, fix it manually.

The more I know the more I don’t know.

abctax55

Level 15

Was there interest income last year?

The nature of the income flows from the K-1 to the F.1040 (interest, dividends, cap gains, etc).

HumanKind... Be Both

R

renee8Author

Level 3

No, that's what's confusing me, this is the 2nd year of prepared a 1065 for them and none of the business partnership income, last year or this year, is from interest.

George4Tacks

Level 15

Curious George wants to know.

Import from a pdf K-1?

Import from a 1065 you created with ProConnect Tax Online?

Answers are easy. Questions are hard!

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