I have the most basic of 1065's to prepare. the partners are 50/50 and the only income is a K-1 from another partnership (rental real estate), but I am down to 2 errors
Form 1065 p4-5, line 2a Analysis of Net Income is incomplete by $2318 (yes that is the net income from the k-1 that was received), but how do it get it to show up all the places it needs to show up ?
Sch K Reconciliation Report (Lines 2 thru 19a) Total - col A does not equal amount shown on Sch K blah blah blah
There has got to be a better way for us small potatoes
Thanks for any advice you can give.
How did you enter the $2,318 from the K-1? I use the K-1 Entry Worksheet for partnerships.
IE, I have $100 ordinary income on page 1. I entered a K-1 for $2,318 real estate income.
On M-1, the total book income is $2,418. I have one corp partner and 2 individuals. On page 5 line 2b I have $806 corp and $1,612 individuals.
Don't forget, you also need entries on the Balance Sheet, assuming you use it. The original purchase of the investment, PLUS any income or LESS loss pass-throughs ($2,318 this year) less distributions if any.