Question

Bryan and Gayle are equal partners in BG Partnership. The partnership reports the following items of income and expense:

Ordinary income from operations	$13,000
Interest income	5,000
Long-term capital gains	23,000
§ 179 expense	55,000
Charitable contributions	3,000

1. page 14-41 Which of these items are considered separately stated items? On what form will these items be reported to the partners?

2. Where will these amounts be reported by the partners?

Answer 1

On what form will these items be reported to the partners?

Separately stated items include:
Interest income	5,000
Long-term capital gains	23,000
179 expense	55,000
Charitable contributions	3,000

These are reported to each of the partners on Schedule K-1

Where will these amounts be reported by the partners?

Interest income - 1040 Schedule B

LTCG - 1040 Schedule D

179 expense -1040 Schedule E page 2

Charitable contributions - 1040 Schedule A