Sign Hawaii Assignment of Partnership Interest Now

Document type sign assignment of partnership interest hawaii now

in this presentation we will take a look at part 19 of our partnership comprehensive problem this time looking in on the schedule K ones here we are on our format 1065 and the first page of the 1065 reporting the income for the partnership now this is going to be a flew through entity therefore we're not typically going to be paying the taxes on on the federal income tax side on the partnership level but rather letting this information flow through with the use of the schedule K ones to the individual tax returns so each individual partner will then be taking this reporting it on their actual form 1040 for that we need to take a look at this schedule K ones so we're in the schedule k-1 now if i scroll down to the schedule k-1 on the left-hand side we should have the the break out of the profit sharing so we don't have that here I'm gonna go and input that now we need to break out the profit sharing so I'm going to go back to our data input I'm gonna go to the partner percentages and we have Tim and James and I believe it was a 30/70 split 3070 split tim at the 30 so I'm going to say this all the way across the board and then James at 70 70 across the board so now let's go back up to the forms so we're gonna go back up to the forms were on Tim here we got the 30 profit loss and the capital so here's going to be the k1 now you can go back through that you can go through the k1 and to kind of figure out how it would tie in to basically the first page of the 1065 generally by considering the profit sharing percent and going through this information you also probably want the instructions which will provide for the schedule k as well as those you can find on the IRS website at irs.gov and that way you can match up any kind of line item that you have questions about to the actual instructions and here's a look at the actual form from the IRS website and if you scroll down under the form you'll have your your information in terms of the boxes and it's a more detail about how to how to fill out those boxes or what they are entailing so we're going to go back then we've got the ordinary income in the first box and again if you want to basically verify these numbers you're gonna say I'm gonna say the 86 3 40 you would think right they take they would be taken an amount from the first page of the 1065 and then multiplying times the percent 30 percent so if I want to get back to the other number I'm gonna say there's the 86 3 40 I'm going to divide by 0.3 and that takes us to the 287 800 287 800 does that look familiar if I go back to the 1065 yep that's going to be the ordinary income that's what you would expect right and then I'm gonna go back to the schedule 1 and you could do that for you know most of the numbers on the schedule 1 so if I want to say all right interest income does that make sense to me let's take a look I could say the 450 divided by the 0.3 and let's do that again and let's take the 450 divided by 0.3 and that's going to give us that 1,500 the 1,500 if I go to the 10 65 on the schedule K was this amount right the 1500 then we'll go back to the k1 let's see what else we got here we've got the 2 2 5 the 2 2 5 divided by 0.3 that's going to give us the 750 for the dividends if I go back to the 1065 and I look at page 4 then there's the 750 for the dividends then let's go back to the schedule k and we then have the qualified dividends which would be the 195 divided by 0.3 that's going to be the 630 back to the 1065 page 4 and we see the 630 here back to the k1 scrolling down we've got then this looked good and then we have the long term capital gains so long term capital gains is going to be the 405 divided by 0.3 that's going to be the 1 3 5 0 1 3 5 0 go to the 1065 gonna go to page 4 and that's gonna be the one three five zero they're also on Schedule D where we've recorded the one three five zero if we go back to our schedule K then we have the other information down here so 13 box 13 that might be something we want to look up we'd then go to the instructions and say all right let's say what box 13 we have box 13 a and that's going to be cash contributions cash contributions that make sense all right cash contributions if I took that one 500 divided by 0.3 that's going to give our 5,000 that 5,000 then was the cash contributions if I go back to 1065 and page for scrolling down or scrolling up there's that 5,000 so we see those these items lined up on on the k1 back to the k1 so we found that item and then we got the self-employment earnings and you can you can take a look at that that's going to be 14 a so 14 a this is going to be 14 self-employment earnings note if you have a section 179 deduction or any port level deduction see the partners instructions before completing and then Abe is the net loss net earnings loss from self-employment and so and this is a box you might want to do some more research on it can't it's it's it's had some fairly recent changes to it but indicates eight six three four zero divided by 0.3 that's what we have software calculated for us the two eight seven eight hundred 287 eight hundred that's here 287 800 and if we go to the schedule K I'm sorry if we go to page four the schedule K here then we see it you see it here this calculation again you might want to do some more research on the self-employment calculation you have a worksheet that she could take a look at for for that worth here's a worksheet that's provided for that calculation as well back to the schedule okay so if we go back to the schedule okay we do saw that one if we go back up top we're looking at the alternative minimum tax so we had the alternative minimum tax item 1 667 divided divided by 0.3 that's the five five five six and if we go back to the 1065 page four then I believe that's the post 1986 depreciation adjustment here the five five five eight so then I'm gonna go back to them so you hopefully the difference is rounding I believe and so I'm gonna go back up there's this item and then 18 so again tax exempt interest and non deductible expenses you could take a look at the instructions I might go okay what about instructions 18 a tax exempt interest this is tax exempt interest income and then B is other tax exempt interest all right so or and we want to see which is non deductible expense okay let's check those out so we have the then the 675 divided by 0.3 that's the 2 2 5 0 if I go back up to the 1065 and we go to page 5 now and scroll down we're looking at that tax exempt interest here so that makes sense and then I'm gonna go back over to the schedule K and we found that one how about C which was the two four zero divided by point three eight hundred ah that looks familiar if I go back up to the 10 or the 1065 page five that was our meals okay so that looks good back to the 1065 we found that one we have the distributions of the forty five thousand that's how much was that we put in for the distributions basically the money that's taken out my drawers for for this partner and then we have 20 a which is the other items 20 a is going to be investment income so 20 a investment income if we take that 676 75 divided by 0.3 we get to that 2,000 250 if we go back up to our schedule okay and go to four then actually I'm sorry if we go to five that's going to be our m1 which was the tax exempt interest the two two five zero two two five zero so let's go back to our schedule cave-in so back to our schedule okay so everything looks good there we have our percentages we'll note what we have on on this side we've got the this is obviously something that if we did the partnership ourselves like if we were doing the partnership return and the individual return then we can use the same software to kind of preform of this it will show you that next time ah and or if if we're doing the partnership return and we need to give it to somebody that we're not doing their individual reach that we need to give it to a minute anyways but if we're not doing their individual return we got to provide them with the k1 so that they can go who to whoever their individual return provider is and enter this information so that would mean they wait they would need the information of the partnership here at partnership address the port the partners so this is the partners information this is kind of like a w-2 right we're reporting the income or 1099 so then we're and and we would be reporting it to the partner as well as to the IRS so that's what we're telling the partner hey here's your here's your k1 we're sending this information to the IRS with your social security number telling them that you've earned this money that you should therefore or you should anyways report it on your form 1040 so then we have the partner's social security number partner's name and information we're gonna say it's a General Partner domestic partner what type of entity it's going to be an individual entity we got the profit sharing information and then down below we have the partners capital account analysis so we have the beginning capital account we've got the current year net income or lost the 106 and so that 106 of course if we if we look at that 106 5 8 3 divided by 0.3 we get the 3 5 5 2 7 6 3 5 5 2 7 6 if we go back to the the 1065 page 5 the 3 5 5 to 7 two seven eight rounding is the book income so that's the book income back to the schedule K so we have the beginning capital we've got that basically book income and then we've got the withdrawals and that's going to give us our ending capital ending capital the one eighty eight eight three so if we take that one eighty eight eight three one eight zero eight eight three plus and we go to our other partner James and we say that we have the plus the Indian capital for to 206 two and that adds up to the 602 945 and if we then go to our our 1065 page five and scroll down we have the m2 which is our beginning balance plus the the book in come up here and then we had the the distributions and then the ending number is going to be our 602 nine forty five so you see that reconciliation on the m2 and the schedule k's now if I go back to the schedule K we can do the same type of analysis I won't do it but you can do the same type of analysis here except of course this is a 70% partner so you could tie into all those numbers in the same way by basically just taking this for example 201 for 60 divided by 0.7 given you that 287 800 that amount of course being found on the 1065 page one the bottom line ordinary business income the 287 800 so this this amount then this schedule K is what's going to be used to report the information on the form 1040 for the individual partners at which time they'll actually pay the tax on that's what what it means to be the flow-through type of entity and a future presentation will actually export one of these K ones to an individual return so you can see how it would populate in the 1040