Schedule K-1: What is it & What Do I Do with It?

Overview

This seminar provides a comprehensive overview of Schedule K-1, which taxpayers may receive from pass-through entities such as Partnerships, Subchapter S Corporations, or Estates/Trusts. The course will cover the most common characteristics of Schedule K-1, including how to report the information on Form 1040. Attendees will also learn about the Qualified Business Income (QBI) Deduction and its reporting criteria. Additionally, relevant topics such as basis and loss limitations, material participation, and integration with the QBI deduction will be addressed, along with a discussion of proposed changes to Schedules K-2 and K-3.

*Please Note:  If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Course Materials Tab and submit to kori.herrera@acpen.com

Highlights

• Overview of Schedule K-1 for Partnerships, S Corporations, and Estates/Trust
• Reporting Schedule K-1 information on Form 1040
• Basis limitations, loss limitations, and material participation rules
• Qualified Business Income (QBI) Deduction and Schedule K-1 integration
• Case studies highlighting real-world application of Schedule K-1 reporting
• Proposed changes to Schedules K-2 and K-3 for 2021 and beyond
• Best practices for avoiding errors and ensuring compliance

Prerequisites

None

Designed For

CPAs, EAs, and tax professionals working with individual taxpayers receiving Schedule K-1 forms

Objectives

• Define the purpose and structure of Schedule K-1
• Differentiate between Schedule K-1 forms received from various entities
• Explain the application of basis limitations, loss limitations, and material participation rules
• Analyze the integration of Schedule K-1 data with the Qualified Business Income (QBI)
  Deduction
• Apply reporting requirements for Schedule K-1 on Form 1040
• Examine case studies to understand common challenges in reporting Schedule K-1
• Discuss the proposed changes to Schedules K-2 and K-3 and their implications
• Identify common errors and best practices for handling Schedule K-1 data

Preparation

None