Navigating a Partnership K-1: The Untold Line Items and What They Really Mean

November 2012Articles New Jersey Family Lawyer

Essentially a K-1 is a document used by partnerships and S-corporations to report a partner’s or a shareholder’s distributed share of income based upon their percentage of stock or how their partnership agreement reads.

The article includes an in-depth explanation of each part of the K-1, as well as a breakdown specifically of each line. The article also includes a mock income statement of how each line would appear on the tax return form K-1.