Partnerships (1065) - Drake Software Support

Drake Software User’s ManualSchedule K-1 for 1065 (Partner Information)Figure 13: In this example, the information entered on the K1S screen appearsonly the individual’s Schedule K-1.Item MIf the answer to Schedule K-1, item M (“Did the partner contribute property with abuilt-in gain or loss?”), is “Yes” for all partners:• Select Yes in the Item M on Schedule K-1 section if the PRNT screen• On screen K1G, select K1M - Built in Gain Loss Statement from the drop list,and type any supplemental information needed in the text box below.If the answer is “Yes” for some partners but not others, use the individual partners’Item M screens to report the supplemental information. The Item M screen isaccessed by clicking the 8805/Item M tab at the top of any partner’s K1 screen. Thesupplemental information should list each property the partner contributed, the datethe property was contributed, and the amount of the property’s built-in gain or loss.Partner’s Adjusted Basis WorksheetNOTEBasis information for individual partners should be entered in the 1040package in Drake; this information cannot be exported from the 1065package to a 1040 return. Such an import would override limitationsand carryovers calculated in the 1040 program.Use the Partner’s Adjusted Basis Worksheet (Basis Wks screen) to calculate a partner’snew basis after increases or decreases are made to basis during the current year.A partner’s adjusted (outside) basis refers to the partner’s investment in a partnership.The basis is determined without considering any amount shown in the partnershipbooks as capital, equity, or similar account. When a partner disposes of an interest in apartnership, the difference between the sale price and the adjusted basis is the taxablegain or loss.The Basis Wks screen is accessible by clicking the Basis Wks tab at the top of the K1screen for a partner. (Access the K1 screen from the Data Entry Menu.)NOTEThe Basis Worksheet is printed only when the option is selected on thePRNT screen.Tax Year 2010 21