Читать книгу Taxation Essentials of LLCs and Partnerships - Larry Tunnell - Страница 27

Although partnership income is taxed at the partner level, it must be measured and reported by the partnership. The partnership files an annual tax return, Form 1065, with the IRS. Attached to the return is a Schedule K-1 for each partner in the partnership, reporting that partner's share of each item of partnership income or loss. Two copies of each Schedule K-1 are filed—one with the IRS and one with the partner. The K-1 identifies the partner, his or her social security number (or other identification number), and his or her address, along with such partner's share of partnership items of income, loss, gain, deduction and other information (for example, alternative minimum tax preferences, and the like). The partners then include their shares of each item of partnership taxable income, as reported to them on Schedule K-1, on their individual tax returns. They pay tax on their shares of partnership taxable income whether or not those shares are distributed to them during the year.

The computation of partnership taxable income is complicated by the need to ensure that all items of partnership income are treated the same on the partners' returns as if those items had been earned or incurred by the partners directly rather than through the partnership. For example, for individuals, the deduction for net capital losses is limited to $3,000 per year. This limitation applies both to net capital losses incurred directly and those incurred by partnerships and allocated to the individual partners.