taxes - form 1065 schedule k-1

[jrhampt]

So, as the tax man in my household, I was not well pleased to find that a couple of my spouse's investments for 2015 had resulted in some tax documents with which I was previously unfamiliar - the form 1065 (schedule k-1).  It's for an investment that results in the investor being a "partner".  I am used to seeing 1099's, but not this; has anyone else encountered this before?

[Mr. Green]

I just finished my taxes today, involving four K-1s from investments in crowdfunded real estate. The instructions that come with the K-1 should tell your what forms you'll need to fill out based on what boxes on the K-1 have data in them. The only tricky part I found was where it referred to "See the Partner's Instructions." It turns out there are multiple Instruction publications for Form 1065, one of which is "Partner's Share of Income, Deductions, Credits, etc." Those instructions gave me everything I needed, though I will say it was confusing at first. For me it resulted in filling out Form 8582, Schedule E, and Form 4952. Though I think that last form is useless in my circumstance because the K-1 didn't give me enough data to complete the form. I believe it was meant to contribute to other data if the form was already being filled out.

[HAPPYINAZ]

I received two K-1s this year and it was all new to me too.  I entered the info into Turbo Tax and the message I got was that since the investment that generated the K-1 was in a retirement account, it wasn't necessary to report it.  So it didn't affect my taxes for this year.

here is a little more about the K-1 form
https://turbotax.intuit.com/tax-tools/tax-tips/Small-Business-Taxes/What-is-a-Schedule-K-1-Tax-Form-/INF19204.html

[zephyr911]

She's probably invested in some MLPs, which treat all investors as partners and issue a K-1 for your share of profit or loss. I produce and issue K-1s for my own LLC and am somewhat familiar with them... what are your specific questions?
Normally you just transfer a couple of data points from the K-1 to a Schedule E (rental/partnership income etc) and it goes into your income section. Read instructions carefully though.