Schedule K-1 for 1065 - Drake Software

Drake Software User’s ManualIncome and DeductionsOrdinary Income (Loss)Net Farm Profit (Loss)Net Gain (Loss)Other Income (Loss)and is calculated accordingly. For more on depreciation and trial balance import, see“Depreciation” on page 50.Ordinary income or loss from other partnerships, estates, and trusts (line 4 of Form1065) flows from either screen K1P (Schedule K-1 from another partnership) orscreen K1F (Schedule K-1 from a fiduciary).The partnership’s net farm profit or loss (line 5 of Form 1065) flows from informationentered on screen F (Farm Income and Expense). Farm profit or loss from otherpartnerships, estates, or trusts appears on line 4 of the return. To enter this information,from the INC screen, click the links to screen K1P or screen K1F on line 4.Enter the farm profit or loss from other partnerships, estates, or trusts on line 1 ofscreen K1P or line 6 of screen K1F.For information on farming partnerships with a corporate partner, see Pub. 225,Farmer’s Tax Guide.Any net gain or loss from the sale, exchange, or involuntary conversion of assets usedin a trade or business activity (line 6 of Form 1065) comes from information enteredelsewhere in the software.Use the INC screen to enter amounts for the “Other income” line of the main form.Specific INC screen entries are displayed on attached statements in View mode of thereturn.Amounts from the following screens also flow to line 7:• Screen 6478 — Form 6478, Alcohol and Cellulosic Biofuel Fuels Credit• Screen 8864 — Form 8864, Biodiesel and Renewable Diesel Fuels CreditAdditional fields on the INC screen include:• Interest income on receivables• Recoveries of bad debts deducted in earlier years• Section 481 adjustments• State tax refund (cash basis)• Taxable income from insurance proceeds• Other income (itemize)To enter additional sources of income not shown, create a CTRL+W worksheet for theOther income (itemize) field on the INC screen.Tax Year 2011 7