Schedule K-1 for 1065 - Drake Software

Drake Software User’s ManualIncome and Deductions• Item G — Initial, final, or amended return; address or name change; technical terminationNOTEA technical termination occurs when there has been a sale or exchangeof 50% or more of the interests in partnership capital and profits within a12-month period. On screen 1 in Drake, mark the Technical terminationbox and either Initial Return or Final Return as applicable.• Item H — Accounting method (Select Cash, Accrual, or Other; if Other, enter adescription of the method used.)• Item I — Number of K-1 forms attached (Completed automatically based on thenumber of K1 screens filled out. Use screen 1 to override this number.)Income and DeductionsEnter income and deductions on the INC (Income) and DED (Deductions) screens.INC screen amounts flow to Form 1065, page 1, lines 1b to 7. (Also see “OtherIncome (Loss)” on page 7.) DED screen amounts flow to Form 1065, page 1, lines 9through 20. “Other income” and “Other deductions” data is shown on attached statement(STM) worksheets in View mode of the return.Schedule KItemsCommonly used fields from Schedule K (including fields for income, dividends, charitablecontributions, and distributions) are provided at the bottom of the INC screen.Figure 2: Schedule K fields at the bottom of the INC screenAmounts entered in these fields should not be re-entered on the K screens.NOTEThere is no “Charitable Contributions” line on page 1 of the 1065 return.Charitable contributions belong instead on Schedule K. Enter charitablecontributions on either the INC screen or screen K, but not both.For information on the Schedule K items at the bottom of the INC screen, see “ScheduleK (Partners’ Distributive Share Items)” on page 19.Tax Year 2011 5