K1x Ideas
The current PAL report in K1A does not include all required PAL items.
See below, the “Income Type” – we would suggest flexibility in the income types as we do a lot of work outside of the system.
Note – depletion needs to be working as breaking out royalty and working interest as well.
K-1 Line Item |
Income Type |
1. Ordinary business income |
PASSIVE |
2. Net rental real estate income (loss) |
PASSIVE |
3. Other net rental income (loss) |
PASSIVE |
5. Interest Income |
PORTFOLIO |
6a. Ordinary dividends |
PORTFOLIO |
7. Royalties |
PORTFOLIO |
8. Net short-term capital gain (loss) |
CAPITAL G/L |
9a. Net long-term capital gain (loss) |
CAPITAL G/L |
|
10. Net section 1231 gain (loss)
1) If there is a net section 1231 loss, classify as an ordinary loss (portfolio) 2) If there is a net section 1231 gain, classify as ordinary income up to the amount of any nonrecaptured section 1231 losses from previous years. The rest, if any, is a long-term capital gain. 3) Nonrecaptured section 1231 losses are the net section 1231 losses for the previous 5 years that have not been applied against a net section 1231 gain. Therefore, if in any of the 5 preceding tax years there was section 1231 losses, a net gain for the current year from the sale of section 1231 assets is ordinary gain to the extent of prior losses beginning with the earliest loss in the 5-year period. |
|
11a. Other portfolio income (loss) |
PORTFOLIO |
11c. Sec. 1256 contracts and straddles |
CAPITAL G/L |
11e. Cancellation of debt |
PASSIVE |
11f. Section 743(b) positive adjustments |
PASSIVE |
11h. Income under subpart F (other than inclusions under sections 951A and 965) |
PORTFOLIO |
11i. Other Income (loss) |
ASSIVE |
13a. Cash contributions (50%) |
CHARITABLE |
13h. Investment interest expense |
PORTFOLIO |
13i. Deductions—royalty income |
PORTFOLIO |
13j. Section 59(e)(2) expenditures |
PASSIVE |
13k. Excess business interest expense |
NONDEDUCTIBLE |
13l. Deductions—portfolio (other) |
PORTFOLIO |
13v. Section 743(b) negative adjustments |
PASSIVE |
13w. Other deductions - 2% Portfolio Deductions |
|
13w. Other deductions |
PASSIVE |
16p. Total foreign taxes paid |
PORTFOLIO |
16q. Total foreign taxes accrued |
PORTFOLIO |
20t1. Cost depletion - Cost - Working Interest |
PASSIVE |
20t1. Cost depletion - Cost - Royalty Depletion |
PORTFOLIO |
K1X is currently working to improve the usability and design of our K-1 products. Once that work is complete, we will be reviewing ideas such as this one to implement in that new experience.