Partnerships must file a tax return known as Form 1065. This notifies the IRS as to...

Partnerships must file a tax return known as Form 1065. This notifies the IRS as to the company's financial activity throughout the year. Part of Form 1065 also includes K-1s. What are K-1s? Why are they important to the partners of a partnership?

Expert Solution

K-1 of Form 1065 includes the share of partners of Partnership Income, Guranteed payments to the partner for services or capital, Dividend , Deductions and credit.

They important to the partners of a partnership because the partner's have to report their share of partnership income , the amount of guaranteed payments received from partnership on Schedule E of their Form 1040.

ekkarill92 answered 2 years ago

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