Schedule K-1 for 1065 - Drake Software

Credits and AdjustmentsDrake Software User’s ManualSelf-Employment IncomeFigure 18: 8825 statements and attachmentsIf the Check to include in self-employment income box is selected at the top of the8825 screen, the amounts from the 8825 screen are included in the calculation for line14a of Schedule K and flow to each K-1. Self-employment calculations are shown onthe WK_SE worksheet generated with the return.Credits and AdjustmentsCertain credits require an adjustment to either income or expenses. Drake 2011 carriesthe required adjustments to the appropriate line of the return and to the M-1.NOTE No adjustment is carried to the M-3 automatically for 2011.Manually reducing the expenses/deductions or increasing the income for these creditscauses the return to be out of balance.Adjustments are made to other income for the credit amounts for the following credits:• Form 6478, Alcoholic and Cellulosic Biofuel Fuels Credit• Form 8864, Biodiesel and Renewable Diesel Fuels Credit• Form 8912, Credit to Holders of Tax Credit Bonds (interest income)Adjustments are made to the appropriate deduction/expenses for the credit amountsfor the following credits:34 Tax Year 2011