2022 IRS Form 1065 Schedule K-1 Walkthrough
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- Опубліковано 28 чер 2024
- In this video, we'll walk you through how to fill out the Schedule K-1 as part of the IRS Form 1065. This example is a continuation of the 1065 walkthrough example of UA-cam business partnership split evenly between two partners 50/50.
Here are all of the IRS Forms you will need in this example, to include:
IRS Form 1065
IRS Form 1065 Instructions
IRS Form Schedule B-1
IRS Form Schedule K-1
www.irs.gov/forms-pubs/about-...
#IRS #Form1065 #partnership
DISCLOSURE: We are not financial advisers. The ideas presented in this video are for entertainment purposes only. Although the information is researched and vetted beforehand, it may not be up to date at the time of viewing. Please do your due diligence and research on the topic. You (and only you) are responsible for the financial decisions that you make.
What does your partnership do?
You deserve a damn award for these videos! You're a real one. Thank you!
After watching several videos, this guy gets it. Simple walkthrough of the most common situations while looking right at the form. 🙌
Glad you enjoyed it!
Thank you again for your informative and concise explanations. I feel so much more confident filling out my K-1
You did a great job explaining! I was able to complete my form following allowing. Thank you so much!
I’m really happy it helped!
This is incredible, thank you.
This video was sooooo helpful! Thank you for making this so easy to understand
Thank you for the video. It was super helpful.
I have had such a hard time trying to do our 1065 and the K1 over the past 2 years and now after watching your video, I finally get it! Thank you so much! Your explanation is concise and so very clear. I wish my accounting teachers back at university would have been as straight forward as you are. Do you have another video showing how to file ones' personal taxes carrying through the info from the LLC with deductions and the such?
Carrying the info from your 1065 over to your 1040 should be pretty straightforward, you’ll add the values to it like you would with a W-2. However if your LLC is taxed as an S Corp, unfortunately we don’t have any videos for that yet
Omg you saved my life. Thank you.
Best video so far! Thanks
Glad it helped!
Just what I needed! Thank you.
You're so welcome!
YOU'RE THE BEST! After struggling for days, we did everything in 30 minutes. Thanks dude.
No problem 👍
My question is do we send it to IRS first then wait to file. Or we send all the forms (1065,B-1, schedK, K-1,1040) at once. I just confused as when ppl say file to IRS.
Basically do IRS need to see the forms before we file our 1040. And do we start the 1065 after the last day of the tax year
These were SO helpful! Thank you!
Glad it was helpful!
Im so grateful with you, thank you!
You are so welcome!
Brad you're awesome. Thank you!
Thanks Kyrima!
so helpful! 🙌
Thank you! You da man!
Dude thanks for the help.
Awesome, thank you SO much!
You're welcome!
Section L: if your partners have the same share of ownership, but they had different amount of gain/losses you can enter those amounts in this section on lines 2 + 3 in section L. This is so all the partners DONT end up with the same amount of gain/loss and they end up with their actual share of contributions. I feel like this is a very important fact you should address.
You're awesome, thanks!!!
You're welcome!
Great video!!
Thanks!
just got my new car yesterday and i’m really happy i came to youtub also was having problems getting stub and statements and tax statements but all good since i got introduced to deelscafe
Perfect.
😊😊😊😊😊😊😊😊😊Thank you very much for the information. 😊😊😊😊😊😊
Hi! This is great! Thank you for breaking this down so it is easy to understand. I am wondering where on the form do you add owner withdrawals?
Are you referring to simply paying yourself in a partnership or an S-Corp owners distribution?
Paying yourself in general.
in a 50/50 partnership.
@@APennyPinchersGuide Do you have a video on guaranteed payments?
It's that little part of the code that says you must return principal cash to an account.
Is this what my siblings and I would follow, for a shared AIRbnb K1? First year so we’re kind of confused by it all
Hi Thank you for the guidance. If my LLC is for holding rental property my wife and I are 50/50, should I place the net rental income in box 2 and also put the same amount in box 14 for self employment earnings?
for NON US resident K1 if I don't have SSN or TIN just leave blank line E ?
This form was intimidating for me but does not look to be as bad now.
I’m happy to hear that!
you are awesome
Thanks for watching!
Thank you so much for this video!!! I was wondering, to file do you just print it out and mail the forms to the IRS at the address listed based on your revenue & state? Do you need to include anything else when mailing? I have searched everywhere on how exactly to "file" and even how to file electronically but can't find anything. So I assuming I just print out the forms and mail them once completed!
You will need to file both the 1065 and any applicable schedule K-1’s that are required. And then you will use the K-1’s to complete your individual 1040s
@@APennyPinchersGuide Yes! I am just wondering how I actually "file" the 1065 and the K-1s. Is it just mailing them to the IRS and that is how you file? For example when you file your 1040, you also have to include a voucher - do you have to include anything else when you mail in the forms for the partnership? I am in a 50/50 partnership and will be the one furnishing the 1065 and the k-1s to the IRS. I just want to know if I have to include anything else in the envelope to the IRS besides the 1065, the K-1s, and the B-1 (and we have form 1125-a as well).
From my experience filing for our partnership, what you said is correct. I haven’t found a way to file partnership return information other than through the mail unless you use a prep software or a CPA
Hi, Can you please confirm if ordinary business income for all partner will be Net Profit/Number of partners or just what they have taken as distribution for the period?
That will depend on how your business is structured with ownership percentages. But usually if it’s equal ownership then it will be profit/ number of partners
Per example, one LLC with two partners (50% ownership each one) filling 1065, net income of $10,000.
How could we determine ordinary business income in SCH K1?
Should we multiply % of ownership by AGI or NET Income? 50%($10K): $5K
Ok if Im getting it right, I only mail this form in case anything changed? Otherwise I don't have to do anything but keep it for my records?
I am a non-us citizen and I don't have a SSN nor a TIN as it's my first time filing out taxes. Should I then put FOREIGN on section II part E?
Also, does the ordinary business incomes reported on different partners K-1's need to reflect their share of profits reported in J, or can it be different if one partner worked more. In other words, should Part III box 1 and 14 always be half of the partnerships total income in 50/50 partnerships, or can it be a different ratio if one partner earned more than the other even though they share a 50/50 interest in the partnership? I realize the sum of both partners incomes must equal the total income of the partnership, not sure if their value need to reflect the partners shares in the partnership.
Payments from the partnership can reflect the amount of work put in by the partners. If you're changing how someone was paid during the year, then you'll need to show that change in J. For example, if the partnership is normally paid out 50/50 but last year for whatever reason one partner had to do the majority of the work and you decided that partner should be paid 60% of the profit, then section J would reflect starting the year out at 50% but then going to 60% for that partner (and the other partner would show a decrease to 40%).
Bottom line, yes section J needs to reflect the accurate percentage of payments
@@APennyPinchersGuide Thanks!
Line #5 is a positive number and line 14 is the same number but negative what does this mean ( trust k1)
Should the income that was paid to the partnership and then paid from partnership to partners be reported in the "distributions" box, as in the income they earned has been distributed to them, or is that something else?
The total income for the partnership will not be reflected on schedule K-1 given to each member of the partnership. On schedule K which is part of form 1065, that will reflect the total income of the partnership. The distributions box refers to securities paid out to partners from the partnership (i.e. stock)
What Does, If don't have SSN or ITIN due to foreign Partner? Please
So for the 1065 here, under Part 2, for my business there two of us partners. This form needs to be completed for each of us correct. We are 50/50 partners and have 6000 in losses this year. Do we put 6000 under part 3 on both forms, or 3000 on each of the forms.
What if you have checked on box 16 (k-1)and will get the k-3 in July? What to do in this situation?
If a partnership percentage changed from throughout the year what tax amount does the person pay at the end of the year?
Your videos are very informative. Thank you for explaining everything the way that you do.....but my one request...talk slower so we can take notes & walk ourselves through everything. Thank you! You're a fast talker....but you know the "language".
Thanks for the video, can you file 1065 Schedule K1 online or must it be e-filed only?
Can you expound on this? e-filing is online
HOW I ASKED THE RIGHT QUESTION?
Is this K-1 walkthrough valid for Form 1120S?, I started watching and when you got to the IRS center I noticed you said look at 1065 for the address, which are different if you are filling a 1120S S-corp return?
I’m sorry I haven’t worked with S-Corps yet (this is the first year for my S-Corp)
Do you need to file a K-1 form (1065) for having traded a PTP stock as an european citizen living in Europe?
Unfortunately tax law with foreign nationals is beyond my scope, I’d recommend reaching out to a CPA in the states that specializes in that area to get a good answer
Not sure if there is a video for this, but what if your partner would like to get out of business now business is going to be reclassified as a sole proprietorship. Do I file the 1065 for this year and I handle that next year?
Whatever year they are going to get out you will file as a final return. Then the next year in which it is just you as a sole proprietorship you can go to just a schedule C instead of needing to file a 1065
Where can I get this form from?
Are you doing an update for tax year 2023?
That's the plan! We will be working through updates on most tax forms we have already covered
We are 50/50 split on paper when we formed but for the first year, my partner went in full time so to supplement the loss of salary she will draw more from the business. I am holding down the fort with my 9-5 job until more reveneue kicks in and taking say 10th of the income for now. So how will that be filled out?
You should just be able to payout 9/10s to your partner on the K-1 and have your K-1 reflect that you’re only receiving 1/10 of the profit
How do I fill out Schedule K-1 if I had no business in year 2021? My business was opened, but there was no income and no revenue.
You’ll still file so long as your business is open even if it had no revenue for that year.
It will actually be really simple since you’ll just enter zero in all the boxes (unless you’re claiming business deductions then make sure those are represented)
One question: 2 partners with 50/50 shares,
But one partner took a higher dollar figure, $10k for one and $20k for the other. Agreed to verbally as per
needed, ( brothers).
Does that effect or change anything?
IF it's NOT documented by paperwork in the COMPANY... Do the forms as 15K each... write up a PERSONAL loan (no interest) for 5K from the (10K) brother to the (20K) brother...
Do you do taxes for business owners? Or bookkeeping would love to hire you
Sorry, I'm not a CPA. Just put this video together to hopefully pass on the knowledge I learned
One of my clients received a k1 along with the copy of 1065. Do I have to complete 1065 for my client too?
I use ATX and totally lost on where to input all the information for her k1
Only the K1 information should be transferred to the individuals 1040. The 1065 is only an informational return for the government
so you have -500 because -1000 was the difference between boxes 1c and 2 on your 1065. But what if the company that is split 50/50 made $5000 after 1c-2 on 1065. Would you put 2500 in the 1 "ordinary business income" and 14 " self employment earnings (loss)." ?
Or do you only put losses there ex -500 in your video?
I got 0 on both parts in part 3
0 income...0 earnings I shouldn't have to fill this out
Can you please explain in what instance this form would be required?
If you have any form of business partnership
@@APennyPinchersGuide does investing in a business mean that it’s a partnership?
@@NothingBtBlueskies Generally no, but if you are a part owner and depending on how the business is structure then you may be issued a K-1
@@APennyPinchersGuide oh, okay. Thank you for taking the time to respond. :)
IF I JUST OPEN THE SCORP 1/20/23, MY NUMBER WOULD BE 0 CORRECT? REGARD THE K1 WOULD IT BE THE INCOME FROM THE DBA?
If you only just opened your business this year then you are not required to file for 2022
I think I understand. The K -1 as well? I DO NOT NEEC TO FILE EITHER? CORRECT?
THANK YOU FOR ANSWERING MY QUESTIONS SO QUICKLY! I FEELING A LITTLE OVERWHELMED. THANK YOU AGAIN
Do I fill out this form if I’m a solo LLC business?
Nope, you would use Schedule C instead
How do I fill this out, its askingme about taxes paid to random countries in south america that this partnership drills for oil in... my tax return has gotten to over 600 pages of information when this income is like $500 in total... wtf
If your taxes are at that level I would highly recommend getting a CPA to help you file them
I have received a K-1 report from MPLX company. I am a shareholder from Latvia. Could you please assist me if I should make any payment (I have only stock purchases and one or two dividend payments) because I do not understand what I should do with this report?
Are you sure it was a Schedule K-1? You should only receive a K-1 if you are a partner in the business.
As for international taxes, I would recommend getting in contact with a CPA.
@@APennyPinchersGuide It is a limited partnership.
@@btv616 hmmm, I’m sorry I wouldn’t want to give you advice on international taxes and be wrong
@@APennyPinchersGuide Could you please suggest whom may I write an email to?
@@btv616 sure, reach out to us on our email APennyPinchersGuide@gmail.com and I’ll do my best to help you find an answer
Do we need to file the K-1 or 1065 if one partner is taking 100% of the income and expenses?
Yes you will, so long as your partnership is active. You must complete all the required forms
I dont know if this is still active, but I had a quick question. Once I have filled out my form 1065 and my K1s, do I just mail them to the IRS? How do I actually file them? Thank you
Through the mail, you can find the exact address on the 1065 general instruction
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How does a registered ponzi scheme claim information on a K-1 if they have stock brokers lending them money? How do they claim dividends and so on? In a chain of custody for dividends to an estate holder? I'd like to know the money that is being lent is properly committed to fair value ..shouldn't it be 40 to 1 ?
I’m sure how that would work since actual Ponzi schemes are illegal
Just a reminder you didn’t get paid to do your taxes
Am from India... Your pronounciation is totally different so can you please go slow
I have been binge watching your videos all day - THANK YOU! From the bottom of my heart. I have paid to meet with tax specialist who didn't break it down nearly as well as you did for free.
I am about to bombard you with a series of questions all stemming from the same confusion point... God bless your soul if you can assist.
My partner and I own the business 50/50. We put a percentage away for taxes and business expenses, and split remaining profits 60/40.
• 1065, Section 2B: I checked yes
• On K-1, Section J: Should we enter 60% on mine and 40% on his (based on income), or 50% 50% (based on ownership)?
• K-1, Part III, Question 1: Again, 60/40 or 50/50 for the profits?
• B-1 forms: (Again) Completed based on percentage of ownership, or percentage of profits?
🙏🫡
It will depend on what your business's operating statement says. If you have it outlined that profits will be split 60/40 then I'd say you're good to break them up that way. Now I "feel" like you should be able to split up profits however you want, but I'd have to really do some digging to make that a statement I would trust