Entering charitable contributions for Form 1065

This article will assist you with entering charitable contributions so that they flow to Schedule K, line 13, and the Schedule K-1, line 13.

You can enter charitable contributions two ways:

• On the Passthrough K-1's screen, or
• On the Other Schedule K Items screen

Choose the applicable set of instructions below.

Follow these steps to enter contributions from a passthrough K-1:

1. Go to the Input Return tab.
2. From the left of the screen, select Schedule K and choose Passthrough K-1's.
3. Click the three dots at the top of the screen and select Lines 12-19.
4. Scroll down to the Other Deductions (13) section.
5. Locate the Charitable Contributions (8) subsection.
6. Enter the contributions in the appropriate fields under Cash or Noncash.

Follow these steps to enter all other charitable contributions:

1. Go to the Input Return tab.
2. From the left of the screen, select Schedule K and choose Other Schedule K Items.
3. Scroll down to the Deductions section.
4. Locate the Charitable Contributions subsection.
5. Enter the amounts in the appropriate fields under Cash or Noncash.

Additional information

For Schedule M-1 and Schedule M-2 purposes, the program doesn't automatically adjust for the difference between item cost or basis and the item's fair market value (FMV). The fair market value appears on the Schedule K, flows through the Schedule M-1 and M-2 and into the balance sheet Partner Capital Accounts.

If the contributed item was carried on the books at cost, make a manual M-1 or M-2 adjustment so that the M-1, line 1 conforms to book income and/or the M-2, line 9 ending capital account amount is correct.