ProWeb – Form 1040 – Schedule K-1 (Form 1065) Income

To enter a K-1 (Form 1065) in Keystone Tax Solutions from the Main Menu of the Tax Return (Form 1040) select:

1. Federal Section
2. Income Menu
3. Other Income
4. K-1 Earnings – Select ‘Begin’ next to Schedule K-1 (Form 1065).

See below basic information on each part of the Income section of the Schedule K-1 1065 Menu. For additional information regarding the requirements for Schedule K-1 (Form 1065) see: Partner’s Instructions for Schedule K-1 (Form 1065).

Part III – Partner’s Share of Current Year Income, Deductions, Credits, etc.

• Actively Managed Passive Loss Carryover
• Disposition Gain/Loss 
• Other Passive Loss Carryover
• Where Do You want to Carry Gain/Loss? 

For detailed information about the above categories, please click here.

• Line 1 – Ordinary Business Income (Loss)
• Line 2 – Net Rental Real Estate Income (Loss) 
• Line 3 – Other Net Rental Income (Loss) 
• Line 4 – Guaranteed Payments 
• Line 5 – Interest Income
• Line 6a – Ordinary Dividends 
• Line 6b – Qualified Dividends 
• Line 7 – Royalties 
• Line 8 – Net Short-Term Capital Gain (Loss) 
• Line 9a – Net Long-Term Capital Gain (Loss) 
• Line 9b – Collectible (28%) Gain (Loss) 
• Line 9c – Unrecaptured Section 1250 Gain 
• Line 10 – Net Section 1231 Gain (Loss) 
• Line 12 – Section 179 Deduction 

For more information about the above categories, please click here.

NOTE: This is a guide on entering Schedule K-1 (Form 1065) into the Keystone Tax Solutions program. This is not intended as tax advice.

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Additional Resources:

Partner’s Instructions for Schedule K-1 (Form 1065)

ProWeb – Form 1040 – Schedule K-1 (Form 1065) – Overview

ProWeb – Form 1040 – Schedule K-1 (Form 1065) – Entity Information

ProWeb – Form 1040 – Schedule K-1 (Form 1065) – Deductions

ProWeb – Form 1040 – Schedule K-1 (Form 1065) – Credits