This article focuses solely on the entry of the Income (or Loss) items which are found on Lines 1 through 10 of the Schedule K-1 (Form 1120-S) Shareholder’s Share of Current Year Income, Deductions, Credits, and Other Items. For additional information regarding the requirements for Schedule K-1 (Form 1120S), see: Shareholder’s Instructions for Schedule K-1 (Form 1120-S).
To enter the income items from a K-1 (Form 1120S) in Keystone Tax Solutions from the Main Menu of the Tax Return (Form 1040) select:
- Federal Section
- Income Menu
- Other Income
- K-1 Earnings – Select ‘Begin‘ next to Schedule K-1 (Form 1120S)
Rents, Royalties, Entities (Sch E, K-1, 4835, 8582)
K-1 Input – Select New and double-click on Form 1120-S K-1 (S Corporation) which will take you to the K-1 Heading Information Entry screen. If the initial K-1 entry was previously keyed in, double click on the entry in the K-1’s pick list.
- Line 1 – Ordinary Income/Loss from Trade or Business Activities
- Line 2 – Net Income/Loss from Rental Real Estate Activities
- Line 3 – Net Income/Loss from Other Rental Activities
- Line 4 – Interest
- Line 5A – Ordinary Dividends
- Line 5B – Qualified Dividends
- Line 6 – Royalties
- Line 7 – Net Short-Term Capital Gain/Loss
- Line 8A – Net Long-Term Capital Gain/Loss
- Line 8B – Collectible (28%) Rate Gain/Loss
- Line 8C – Unrecaptured Section 1250 Gain
- Line 9 – Net Gain/Loss under Section 1231
- Line 10A – Other Portfolio Income (Loss)
- Line 10B – Involuntary Conversions
- Line 10C – Section 1256 Contract & Straddles
- Line 10D – Mining Exploration Costs Recapture
- Line 10E – Other Income (Loss)
- Line 11 – Section 179 Deduction
For more information on the categories about click here.
For more information about the Section 179 Deduction click here.
NOTE: This is a guide on entering the Income (Loss) items from Schedule K-1 (Form 1120S) into the Keystone Tax Solutions program. This is not intended as tax advice.
Additional Resources:
Shareholder’s Instructions for Schedule K-1 (Form 1120S)
ProWeb – Form 1040 – Schedule K-1 (Form 1120S) – Overview
ProWeb – Form 1040 – Schedule K-1 (Form 1120S) – Entity Information