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How to export Schedule K-1's between tax returns

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Intuit

How to export Schedule K-1's between tax returns

Lacerte will allow you to export a completed Schedule K-1 and import the data into the recipient's tax return, whether that is an Individual return or another business entity.

Before you start:

  • The K-1 import feature does not work for Fiscal year returns.
  • A grantor type trust does not produce a Schedule K-1 and therefore cannot be exported.
  • The recipient name and SSN/EIN must match exactly for the export/import to work.
  • The K-1 Data path should be the same for all modules. You can check this by going to the Settings menu and choosing Options. Click on Setup then K-1 Data Path.
  • Most state K-1 information will not import. Amounts from state Schedule K-1's or passthrough summaries must be entered manually. For the Partnership module, certain line items will import the sourcing for California.
  • The Not a passive activity and Actively participated in real estate checkboxes will not mark during import/export.  The program does not have input for the partner level, these must be marked in the Individual module.
  • Many Schedule K-1 income and expense items are transferred to the input screen to simplify entries on the appropriate tax return.
  • Any item that needs to be reviewed prints on a supplemental information page. However, we recommend that all items be reviewed for accuracy and correct treatment on the tax return, particularly those on the supplemental information pages.

To complete the export from a Partnership return:

  1. Open the client file.
  2. Go to Screen 32.1, Schedule K-1 Miscellaneous.
  3. From the Partner section on the left click on the partner name.
  4. Under K-1 Export check the Export partner K-1 data box.
  5. Repeat steps 3 and 4 for each partner you plan on exporting.
  6. From the Tools menu choose K-1 Data Export.
  7. Review the list of partners being exported.
    • If you need to make changes return to screen 32.1 and make sure the correct partners are marked for export.
  8. Click Export to start the export.
  9. Click OK once it's complete.
    • Once the export has been completed within the business return, any changes to the K-1 will trigger Lacerte to prompt you to export the K-1 again.
  10. Close the partnership return.
  11. Open the return that is for the recipient. This could be a 1040, 1120, 1120S, 1041, or another 1065.
  12. You will be prompted to review the Sch K-1 Data Import screen. If the data is correct click on Accept Data.
  13. Lacerte will ask you to confirm the overwrite of the existing data. Click Yes to continue importing the data, click No to cancel.
  14. Click OK to continue to the tax return Details tab.
  • Ordinary Business Income (Loss)
  • Net Rental Real Estate Income (Loss)
  • Other Net Rental Income (Loss)
  • Guaranteed Payments
  • Ordinary Dividends
  • Qualified Dividends
  • Royalties
  • S/T Capital Gain (Loss)
  • L/T Capital Gain (Loss)
  • Collectibles (28%) Gain (Loss)
  • Unrecaptured Section 1250 Gain
  • 1231 Gain (loss) - Passive
  • Passive S/T Capital Gain (Loss)
  • Passive L/T Capital Gain (Loss)
  • Section 179 Deduction
  • Charitable Contributions - Cash (50% Limitation)
  • Charitable Contributions - Cash (30% Limitation)
  • Charitable Contributions - Noncash (50% Limitation)
  • Charitable Contributions - Noncash (30% Limitation)
  • Charitable Contributions - Cap. Gain Prop. (30% Limitation)
  • Charitable Contributions - Cap. Gain Prop. (20% Limitation)
  • Intangible Drilling Costs
  • Net Earnings from Self-Employment
  • Gross Farming Income
  • Low-Income Housing Credit (pre-90)
  • Low-Income Housing Credit (post-89)
  • Work Opportunity Credit
  • Welfare-to-Work Credit
  • Orphan Drug Credit
  • Increasing Research Activities Credit
  • Disabled Access Credit
  • Qualified Electric Vehicle Credit
  • Empowerment Zone Employment Credit
  • Indian Employment Credit
  • Employer Social Security Credit
  • Small Employer Pension Plan Startup Costs Credit
  • NY Liberty Zone Business Employee Credit
  • Post-1986 Depreciation Adjustment
  • Adjusted Gain (Loss)
  • Preference Items - Gross Income Oil and Gas
  • Preference Items - Gross Deductions Oil and Gas
  • Depreciation on Real Property (Pre-1987)
  • Depreciation on Leased Personal Property (Pre-1987)
  • Nondeductible Expenses
  • Distributions of Money
  • Distributions of Property
  • Percentage Depletion in Excess of Basis
  • Preference Items - Excess IDC
  • Enhanced Oil Recovery Credit
  • Line 11 - Other income (loss)
  • Line 13 - Deductions related to portfolio income
  • Line 13 - Other deductions
  • Line 13 - Investment interest expense
  • Line 13 - Section 59(e)(2) expenditures
  • Line 13 - Other deductions
  • Line 14 - Gross nonfarm income
  • Line 15 - Qualified rental real estate rehabilitation expenditures
  • Line 15 - Other credits related to rental real estate activities
  • Line 15 - Credits related to other rental activities
  • Line 15 - Recapture of low-income housing credit - sec. 42(j)(5) partnerships
  • Line 15 - Recapture of low-income housing credit - other partnerships
  • Line 15 - Other credits
  • Line 16 - Gross income from all sources
  • Line 16 - Gross income sourced at partner level
  • Line 16 - Foreign gross income sourced at partnership level - passive
  • Line 16 - Foreign gross income sourced at partnership level - listed
  • Line 16 - Foreign gross income sourced at partnership level - general
  • Line 16 - Deductions allocated and apportioned at partner level - interest expense
  • Line 16 - Deductions allocated and apportioned at partner level - other
  • Line 16 - Deductions allocated and apportioned at partnership level - passive
  • Line 16 - Deductions allocated and apportioned at partnership level - listed
  • Line 16 - Deductions allocated and apportioned at partnership level - general
  • Line 16 - Foreign taxes paid
  • Line 16 - Foreign taxes accrued
  • Line 16 - Reductions in taxes available for credit
  • Line 16 - Foreign trading gross receipts
  • Line 16 - Extraterritorial income exclusion
  • Line 16 - Other foreign transactions
  • Line 17 - Depletion (other than oil and gas)
  • Line 17 - Other AMT items
  • Line 18 - Tax-exempt interest income
  • Line 18 - Other tax-exempt income
  • Line 20 - Investment income
  • Line 20 - Investment expenses
  • Line 20 - Income on Schedule K not on books
  • Line 20 - Depreciation on Schedule K not on books
  • Line 20 - Deductions on Schedule K not on books
  • Line 20 - Other items
  • Line 20 - Supplemental K-1 information for this partner
  • Line 20 - Supplemental K-1 information for all partners
  • See Sch. K-1 for additional info. on rental real estate activities.
  • See Sch. K-1 for additional info. on other rental activities.
  • See Form 3468 attached to Schedule K-1
  • See Form 8271 attached to Schedule K-1
  • See Form 8308 attached to Schedule K-1
  • See partner's summary of oil & gas activities attached to Schedule K-1.
  • See partner's passthrough entity summary attached to Schedule K-1.
  • California:
  • Line 4b - Dividend income [CA]
  • Line 4c - Royalty income [CA]
  • Line 4e - Other portfolio income [CA]
  • Line 6 - Net section 1231 gain (loss) [CA]
  • Line 7 - Other income (loss) [CA]
  • Line 8 - Charitable contributions [CA]
  • Line 11 - Other deductions [CA]
  • Line 12a - Investment expense on investment debts [CA]
  • Line 12b(1) - Investment income incl. on lines 4a, 4b, 4c, and 4e [CA]
  • Line 12b(2) - Investment expense included on line 10 [CA]
  • Line 13c - Other credits related to rental real estate activities [CA]
  • Line 13d - Credits related to rental real estate activities [CA]
  • Line 13 - Other credits [CA]
  • Line 15c - Depletion (other than oil and gas) [CA]
  • Line 15e - Other adjustments and tax preference items [CA]
  • Line 16a - Total IRC Section 59(e) expenditures [CA]
  • Line 17 - Tax-exempt interest income [CA]
  • Line 18 - Other tax-exempt income [CA]
  • Line 19 - Nondeductible expenses [CA]
  • Line 20 - Distributions of money [CA]
  • Line 21 - Distributions of property [CA]
  • Line 22 - Income on Schedule K not on books [CA]
  • Line 22 - Depreciation on Schedule K not on books [CA]
  • Line 22 - Deductions on Schedule K not on books [CA]
  • Line 22 - Other items [CA]
  • See Sch. K-1, line 22 for additional info. on rental real estate activities. [CA]
  • See Sch. K-1, line 22 for additional info. on other rental activities. [CA]
  • See partner's summary of oil & gas activities attached to Schedule K-1. [CA]
  • See partner's passthrough entity summary attached to Schedule K-1. [CA]

Additional information:

  • The CA amounts on these input sheets are directly from Schedule K and are not adjusted for any basis or at-risk limitations, if applicable. You must adjust these amounts if any of these limitations apply. [CA]
  • If the "Type of Entity" (Screen 7) is set to Exempt, IRA or Disregarded Entity, the program will not automatically export the K-1 data for this partner and a diagnostic will generate. Use "K-1 Export: Partner Tax Type [O]" to force the program to export to the Individual, Partnership (a different return), Corporate, S-Corporation or Fiduciary program if applicable, or uncheck the K-1 export box for this partner.
  • Separately stated details from the disposition of assets with prior Section 179 expense transfer to the Dispositions screen.

To complete the export from a S-Corporation return:

  1. Open the client file.
  2. Go to Screen 6, Schedule K-1 Miscellaneous Info.
  3. From the Shareholder section on the left click on the shareholder name.
  4. Under K-1 Export check the Export shareholder K-1 data box.
  5. Repeat steps 3 and 4 for each shareholder you plan on exporting.
  6. From the Tools menu choose K-1 Data Export.
  7. Review the list of shareholders being exported.
    • If you need to make changes return to screen 36 and make sure the correct shareholders are marked for export.
  8. Click Export to start the export.
  9. Click OK once it's complete.
    • Once the export has been completed within the business return, any changes to the K-1 will trigger Lacerte to prompt you to export the K-1 again.
  10. Close the s-corporation return.
  11. Open the return that is for the recipient. This could be a 1040, or 1041.
  12. You will be prompted to review the Sch K-1 Data Import screen. If the data is correct click on Accept Data.
  13. Lacerte will ask you to confirm the overwrite of the existing data. Click Yes to continue importing the data, click No to cancel.
  14. Click OK to continue to the tax return Details tab.
  • Schedule K-1 Line Item
  • S Corporation Name
  • S Corporation EIN
  • Tax Shelter Registration Number
  • Ordinary Income
  • Rental Real Estate Income (loss)
  • Other Rental Income
  • Interest Income
  • US Bonds (Nontaxable to state)
  • Ordinary Dividends
  • Qualified Dividends
  • Royalties
  • Short-term Capital Gain (loss)
  • Collectibles 28% Gain (loss)
  • Long-term Capital Gain (loss)
  • Net 1231 Gain (loss)
  • Unrecaptured Section 1250 Gain
  • Passive Short-term Capital Gain (loss)
  • Passive Long-term Capital Gain (loss)- 28%
  • Passive Long-term Capital Gain (loss)
  • Section 1256 contracts and straddles
  • Section 179 Expense Deduction
  • Investment Interest Expense
  • Cash Contributions- 50% Limitation
  • Cash Contributions- 30% Limitation
  • Non-cash Contributions- 50% Limitation
  • Non-cash Contributions- 30% Limitation
  • Non-cash Contributions- 30% Capital Gain Property
  • Non-cash Contributions- 20% Capital Gain Property
  • Deductions - Royalty Deductions
  • Deductions - Portfolio Income (2% Floor)
  • Deductions - Portfolio Income (other)
  • Commercial Revitalization Deduction
  • Amount of Section 59(e)(2) expenditures
  • Self-Employed Health Insurance Premiums
  • Other Net Investment Income
  • Low-Income Housing Credit
  • Undistributed Capital Gain Credit
  • Credit for alcohol and cellulosic biofuel fuels
  • Work Opportunity Credit
  • Welfare-to-Work Credit
  • Disabled Access Credit
  • Empowerment Zone Employment Credit
  • Employer Social Security Credit
  • Orphan Drug Credit
  • Qualified Electric Vehicle Credit
  • Indian Employment Credit
  • Small Employer Pension Plan Startup Costs Credit
  • Employer-Provided Childcare Facilities Credit
  • Qualified zone academy bond credit
  • Hurricane Katrina Housing Credit
  • Alternative Motor Vehicle Credit
  • Contributions to Selected Community Development Corps credit
  • Biodiesel and Renewable Diesel Fuels Credit
  • Renewable Electricity Production Credit - Section A
  • Renewable Electricity Production Credit - Section B
  • Qualified Railroad Track Maintenance Credit
  • Distilled Spirits Credit
  • Energy Efficient Home Credit
  • Alternative Fuel Vehicle Refueling Property Credit
  • Low Sulfur Diesel Fuel Production Credit
  • Gross Farming Income
  • Post-1986 depreciation adjustment
  • Adjusted Gain or Loss
  • Depreciation on Real Property (pre-1987)
  • Depreciation on Leased Personal Property (pre-1987)
  • Depletion (Other than oil and gas)
  • Preference Items - Gross Income Oil and Gas
  • Preference Items - Gross Deductions Oil and Gas
  • Nondeductible expenses
  • Distributions
  • Loan repayments
  • Other current year increases to basis
  • Other current year decreases to basis
  • Loans made to the S Corp during the year
  • Adjustments to debt basis
  • Preference Items - Excess IDC

Note: There are certain conditions as to why some items did not transfer. The most common is when a K-1 override is entered on an item such as other income or other credits.

  • Line 10 - Other income (loss)
  • Box 12 - Other Section 59(e)(2) expenditures or Dry Hole costs
  • Line 12 - Other deductions
  • Line 13 - Qualified rental real estate rehabilitation expenditures
  • Line 13 - Other credits related to rental real estate activities
  • Line 13 - Credits related to other rental activities
  • Line 13 - Other credits
  • Line 14 - Gross income sourced at shareholder level
  • Line 14 - Foreign gross income sourced at corporate level - passive
  • Line 14 - Foreign gross income sourced at corporate level - listed categories
  • Line 14 - Foreign gross income sourced at corporate level - general limitation
  • Line 14 - Deductions allocated and apportioned at shareholder level - interest expense
  • Line 14 - Deductions allocated and apportioned at shareholder level - other
  • Line 14 - Deductions allocated and apportioned at corporate level - passive
  • Line 14 - Deductions allocated and apportioned at corporate level - listed categories
  • Line 14 - Deductions allocated and apportioned at corporate level - general limitation
  • Line 14 - Foreign tax paid
  • Box 14 - Foreign taxes accrued
  • Line 14 - Reduction in taxes available for credit
  • Box 14 - Foreign trading gross receipts
  • Box 14 - Extraterritorial income exclusion
  • Box 14 - Other foreign transactions
  • Line 15 - Other AMT items
  • Line 16 - Tax-exempt interest income
  • Line 16 - Other tax-exempt income
  • Line 17 - Other Information
  • Line 17 - Other Information from passthrough entity
  • Line 17 - Recapture of low-income housing credit - sec. 42(j)(5) partnerships
  • Line 17 - Recapture of low-income housing credit - other
  • Line 17 - Supplemental K-1 information for this shareholder
  • Line 17 - Supplemental K-1 information for all shareholders
  • Line 17 - Expenditures/basis qualifying for investment credit (Form 3468)

Additional information:

  • Separately stated details from the disposition of assets with prior Section 179 expense transfer to Dispositions (Screen 17).

To complete the export from a Fiduciary return:

  1. Open the client file.
  2. Go to Screen 43, Schedule K-1 Overrides/Miscellaneous.
  3. From the Beneficiary section on the left click on the beneficiary name.
  4. Under K-1 Export check the Export beneficiary K-1 data box.
  5. Repeat steps 3 and 4 for each beneficiary you plan on exporting.
  6. From the Tools menu choose K-1 Data Export.
  7. Review the list of beneficiaries being exported.
    • If you need to make changes return to screen 43 and make sure the correct beneficiaries are marked for export.
  8. Click Export to start the export.
  9. Click OK once it's complete.
    • Once the export has been completed within the business return, any changes to the K-1 will trigger Lacerte to prompt you to export the K-1 again.
  10. Close the fiduciary return.
  11. Open the return that is for the recipient. This could be a 1040, 1065, 1120, 1020S, or another 1041.
  12. You will be prompted to review the Sch K-1 Data Import screen. If the data is correct click on Accept Data.
  13. Lacerte will ask you to confirm the overwrite of the existing data. Click Yes to continue importing the data, click No to cancel.
  14. Click OK to continue to the tax return Details tab.
  • Interest income
  • Ordinary Dividends
  • Qualified Dividends
  • Net short-term cap gains
  • Net long-term capital gains
  • 28% rate gains
  • Unrecaptured Section 1250 gains
  • Other portfolio and nonbusiness income
  • Ordinary business income (loss)
  • Rental real estate income (loss)
  • Other rental income (loss)
  • Depreciation - passive
  • Amortization - passive
  • Depreciation - nonpassive
  • Amortization – nonpassive
  • Estate tax deduction
  • Final year – Excess deductions on termination
  • Final year – short term capital loss carryover
  • Final year – long term capital loss carryover
  • Final year – net operating loss (carryover)
  • Final year – minimum tax net operating loss (carryover)
  • Depreciation on real property (pre-1987)
  • Depreciation on leased personal prop (pre-1987)
  • Adjustment for minimum tax purposes
  • AMT adjustment attributable to qualified dividends
  • AMT adjustment attributable to net short term capital gain
  • AMT adjustment attributable to net long term capital gain
  • AMT adjustment attributable to unrecaptured section 1250 gain
  • AMT adjustment attributable to 28% rate gain
  • Depreciation adjustment after 12/31/86
  • Adjustment and tax preference items – depletion
  • Exclusion items
  • Estimated taxes credited from trust
  • Withholding
  • Work opportunity credit
  • Biofuel Producer Credit
  • Empowerment zone and renewal community employment credit
  • Indian employment credit
  • Orphan drug credit
  • Employer-provided childcare credit
  • Gross farming income
  • Qualified production activities income
  • Employer’s W-2 wages
  • Employer Provided Differential Wage Payments Credit
  • Depletion – passive
  • Depletion – nonpassive
  • Adjustments and tax preference items – amortization
  • Low income housing credit
  • Qualified rehabilitation expenditures
  • Basis of other investment credit property
  • Credit for Small Employer health insurance premiums
  • Credit for increasing research activities
  • Renewable electricity and refined coal production credit, section A
  • Renewable electricity and refined coal production credit, section B
  • Biodiesel and renewable diesel fuels credit
  • Clean renewable energy bond and Gulf bond tax credit
  • Recapture of credits
  • Tax-exempt interest/dividends
  • Foreign taxes
  • Investment income from lines 1,2,5,6
  • Foreign trading gross receipts
  • Tax-exempt other income
  • U.S. Government interest
  • U.S. Government dividends
  • Domestic production activities deduction from cooperatives
  • Deductions in the final year of trust or decedents estate
  • Deductions in the final year of trust or decedents estate
    • Additional items included on Line 14H
    • Supplemental information included with the K1

Additional information:

  • The Fiduciary Tax program transfers detailed input to Screen 20 of the Lacerte Individual Tax program for each beneficiary.

There are situations where the data may not transfer.  Check the following items to verify everything is set up correctly, or to make necessary adjustments.

  • Make sure the Schedule K-1 has information to export.  If there are no income or loss items the K-1 will not export.
  • Check the Social Security Number (SSN) of the partner(s), shareholder(s), or beneficiary(s) match the SSN for the Taxpayer or Spouse in the individual module.
  • Check the dates of the return. If the return is on a Fiscal year the K-1 export will not work.
  • If all other information has been verified and the information is still not appearing in the Individual module, check to see if the return has been split via the Split Joint Return feature in the Tools menu.  If it has, Lacerte will export the K-1 information to the single/split return as opposed to the joint return.  The MFS return may need to be backed up, and deleted in order to export the K-1 data to the MFJ return.
  • Schedule K-1 activities already exist within Screen 20 of the Individual program, or the SSN is verified as correct and no import box appeared, enter the number of the specific K-1 into the entity's return as the activity number:
    • Partnership: Screen 32, Code 22 - Number of K-1 Activity in 1040 [O]
    • S- Corporation: Screen 36, Code 9 - Number of K-1 Activity in 1040 [O]
    • Fiduciary: Screen 43, Code 116 - Number of K-1 Activity in 1040 [O]
Examples:
  • If the K-1 corresponded to the second partnership in Screen 20 of the Individual return, enter 2 in the Partnership return, Screen 32, Code 22 for the specific partner.
  • If there are no other K-1's currently present in Screen 20, enter 1 in the Number of K-1 Activity in 1040 field in the appropriate business return.
  • If a taxpayer and spouse each have a K-1 from the same entity, enter consecutive numbers (e.g. 1 and 2, or 2 and 3 if there is another K-1 already present in Screen 20) in the Number of K-1 Activity in 1040 field in the appropriate business return.

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