Our Videos

FAQ / For purposes of the requirement in the Form 1065 Schedule K-1, Item J, instruction at page 24, first paragraph, last sentence referring to "multiple changes in the profit and loss sharing percentage


Facts: Without the requested clarification my client partnership will have to prepare an enormous attachment to each of its Schedules K-1, as such, allocations may fluctuate many times during the year as the variables on which they are based (profit targets of a certain activity, etc.) change. The partnership agreement does not provide for fixed percentages in the partnership profit, loss, and capital. One partner sold part of his interest on two different dates during the year.

A6: Yes. For purposes of the requirement in the Form 1065 Schedule K-1, Item J, instruction at page 24, first paragraph, last sentence referring to "multiple changes in the profit and loss sharing percentage during the year," the phrase “change” for this purpose does not apply to changes which occur because of fluctuations in profit allocations during the year due to formula methods specified in the partnership agreement.

The partnership must report on Schedules Item J the percentage interest at the beginning and end of year in profit, loss, and capital for each partner. In cases where the partner has multiple changes in ownership, the multiple change attachment to the K-1 is necessary but only listing dates and percentages for actual changes in ownership.

 




Testimonials

Niranjan Sujay
I recently used LOGOS INTERNATIONAL for the translation of my bachelor’s certificate, and I couldn’t...
Read More »
Katia Nagata

As a foreigner, I needed a certified translation, so I called the DOE to give me a list of the ce...
Read More »
AnnaMaria Realbuto
Thank you for all your assistance and efficiency...
Read More »
Kateryna Melnychenko
Thanks a lot Anton!...
Read More »




FAQ

Q. Will the IRS allow me to provide it with direct deposit information, if I didn’t include that information on my original tax return?
Read More »
DO U.S. EMBASSIES AND CONSULATES PROVIDE NOTARIAL AND AUTHENTICATION SERVICES FOR NON-U.S. CITIZENS?
Read More »
What is a certified copy of a corporate document?
Read More »
WHAT IS AN "APOSTILLE"?
Read More »






News

April 23, 25
Pope Francis died of stroke and irreversible heart failure – death certificate
Read More »
April 16, 25
Actor Val Kilmer died from pneumonia – death certificate
Read More »
April 8, 25
Most populous Iowa County experiencing death certificate delays
Read More »
April 2, 25
Birth certificate error leads to numerical name for Georgia woman
Read More »