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Drake Software User’s ManualSupplemental IncomeSchedule K-1Screen codes: K1,K1F, K1SScreens for Schedule K-1 are accessible from the Income tab. The program containsthree types of K-1 screens, listed in Table 5-2.Table 5-2: K1 Screens in DrakeScreen Code Type of K-1K1; also K1P K-1 for partnership incomeK1FK1SK-1 for fiduciary incomeK-1 for S corporation incomeEnter information directly into any of these three forms in Drake, or export K-1 informationfrom a pass-through entity into an individual return.ActivityTypesNew in 2008, the E, K1, and 4835 screens feature an Activity Type drop list for designatingan activity as passive or non-passive. A selection from this list controls whatincome data, if any, goes to Form 8582, Passive Activity Loss Limitations. Availableactivity types are described in Table 5-3.Table 5-3: Activity Type Selections, for E, K1, and 4835 screensActivity TypeA - Active Rental Real EstateB - Other Passive ActivityC - Real Estate ProfessionalD - Not a Passive Activity(not an option for 4835)DescriptionActivity is a rental real estate activity with active participation.Calculation flows to the “Rental Real Estate ActivitiesWith Active Participation” section in Part I of Form 8582 andto WKS 1.Activity is a passive activity but is not a rental real estateactivity. Calculation flows to the “All Other Passive Activities”section in Part I of Form 8582 and to WKS 3.Activity is that of a real estate professional and does not flowto Form 8582.Activity is not a passive activity. Because it is non-passive,the calculations from this screen do not flow to Form 8582.If A or B is selected, the activity is considered a currently passive activity because “A”is rental real estate and “B” is other passive activity.NEW FOR2008If General partner is selected on the K1P screen, self-employedincome is automatically reduced by any amount entered in the Section179 deduction field. The unreimbursed partnership expense flows to aseparate line on Part II of Schedule E.K-1 Exports K-1 data can be exported from an 1120S, 1065, or 1041 return in Drake to an individualreturn in Drake. To export K-1 data, you must first have the following items:• An 1120S, 1065, or 1041 return, completed in DrakeTax Year 2008 105