User's Manual - Drake Software

Supplemental Income
Drake Software User’s Manual
Figure 5-25: If the PMI box on line 9 of screen E is marked,
the program displays a “PMI” indicator on the Schedule E.
Operating
Expenses
Carryover
Rental of
Personal
Property
Screen E includes a field for entering the carryover of operating expenses. This field is
located in the lower-right quadrant of the screen. An entry in this field flows to the
Rental Limitation on Deductions worksheet (WK_E____).
Enter income from “casual” rental on personal property on screen 3. Enter expenses
(if any) on screen 4, in the Expenses from casual rental of personal property field
under line 36. Do not use screen E. If you do have a Schedule E with the return, enter
this “casual” rental income on screen E and not on screen 3.
Schedule K-1
Screen codes: K1,
K1F, K1S
Screens for Schedule K-1 are accessible from the Income tab. The program contains
three types of K1 screens: K1P for partnership income; K1S for S corporation
income; and K1F for fiduciary income. Enter information directly into a K1 screen, or
export K-1 information from a pass-through entity into an individual return.
NOTE
The K1P and K1S screens include 6198 At Risk tabs for tracking partner
or shareholder basis for at-risk activities. For more information on
using these tabs, see “Tracking At-Risk Basis” on page 129.
Accessing
K-1 Data
Fields
Two screens are used to complete the lines on a Schedule K-1 (see Figure 5-26). From
the Data Entry Menu, the first page of the selected K1 screen is displayed.
Figure 5-26: In this example, the program is opened to the first “page” of the K1P screen.
In Figure 5-26, you would click 1065 K1 13-20 to complete lines 13 through 20.
Activity
Types
The K1P, K1F, K1S, E, and 4835 screens feature an Activity Type drop list for designating
an activity as passive or nonpassive. A selection from this list controls what
124 Tax Year 2012