Schedule K-1 (8865 Partner�s Share of Income, Deductions, Credits, etc.

2007 Schedule K-1 (Form 8865)
Partner’s Share of Income, Deductions, Credits, etc
Purpose: This is the first circulated draft of the 2007 Schedule K-1 (Form 8865) for
your review and comments. See below for major changes.
TPCC meeting: No meeting is planned, but you may request one by contacting Kelli Patilla.
Prior Revisions The 2006 Schedule K-1 (Form 8865) may be accessed at:
http://www.irs.gov/pub/irs-pdf/f8865sk1.pdf
Other products Circulations of draft tax forms and instructions are posted at
http://taxforms.web.irs.gov/draft_products.html . Draft publications are not
available.
Comments: Please email, fax, call, or mail any comments by June 27, 2007, to me at the address
below and email the form’s reviewer, Sharon Dewsbury, at
[email protected].
Kelli Patilla
Tax Forms and Publications
SE:W:CAR:MP:T:B
Phone: 202-283-2734
Email: [email protected]
Major changes to the 2007 Schedule K-1(Form 8865)

1. All years are updated appropriately.
2. The codes for Box 16 have been revised to reorder and rename the categories
of foreign gross income sourced at the partnership level and the deductions
allocated and apportioned at the partnership level to foreign source income.
This reflects changes made to section 904(d) by the American Jobs Creation
Act of 2004. PL 108-357, sec 404.

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I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
Schedule K-1 (FORM 8865), PAGE 1 OF 2
MARGINS; TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20. INK: BLACK
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Final K-1

2007

Schedule K-1
(Form 8865)

Part III

year beginning
ending

Information About the Partnership

A

Partnership’s employer identification number

B

Partnership’s name, address, city, state, and ZIP code

Part II

Information About the Partner

C

Partner’s identifying number

D

Partner’s name, address, city, state, and ZIP code

E

Partner’s share of profit, loss, capital, and deductions:
Beginning

F

Signature

O.K. to print
Revised proofs
requested

Amended K-1

OMB No. 1545-1668

Partner’s Share of Current Year Income,
Deductions, Credits, and Other Items

, 2007

, 20

Partner’s Share of Income, Deductions,
Credits, etc. © See back of form and separate instructions.
Part I

Date

f
o
s
a
7
t
0
f
0
a
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/
D /18
6
0

For calendar year 2007, or tax

Department of the Treasury
Internal Revenue Service

Action

1

Ordinary business income (loss)

2

Net rental real estate income (loss)

3

Other net rental income (loss)

4

Guaranteed payments

5

Interest income

6a

Ordinary dividends

6b

Qualified dividends

7

Royalties

8

Net short-term capital gain (loss)

9a

Net long-term capital gain (loss)

9b

Collectibles (28%) gain (loss)

9c

Unrecaptured section 1250 gain

10

Net section 1231 gain (loss)

11

Other income (loss)

15

Credits

16

Foreign transactions

17

Alternative minimum tax
(AMT) items

18

Tax-exempt income and
nondeductible expenses

19

Distributions

20

Other information

Ending

Profit

%

%

Loss

%

%

Capital

%

%

Deductions

%

%

Partner’s capital account analysis:
Beginning capital account

$

Capital contributed during the year

$

Current year increase (decrease)

$

Withdrawals & distributions

$

Ending capital account

$

Tax basis

GAAP

(

Section 704(b) book

)
12

Section 179 deduction

13

Other deductions

For IRS Use Only

Other (explain)

14

Self-employment earnings (loss)

*See attached statement for additional information.
For Paperwork Reduction Act Notice, see Instructions for Form 8865.

Cat. No. 28396B

Schedule K-1 (Form 8865) 2007

1
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
SCHEDULE K-1 (FORM 8865), PAGE 2 OF 2
MARGINS; TOP 1⁄ 2 ”, CENTER SIDES. PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 81⁄ 2 ” x 11”
PERFORATE: NONE
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Schedule K-1 (Form 8865) 2007

Page

This list identifies the codes used on Schedule K-1 for partners and provides summarized reporting information for partners who
file Form 1040. For detailed reporting and filing information, see the Partner’s Instructions for Schedule K-1 (Form 1065) and the
instructions for your income tax return.

f
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6
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%

1. Ordinary business income (loss). You must first determine whether the
income (loss) is passive or nonpassive. Then enter on your return as
follows:
Report on
Passive loss
See Partner’s Instr. (Form 1065)
Passive income
Schedule E, line 28, column (g)
Nonpassive loss
Schedule E, line 28, column (h)
Nonpassive income
Schedule E, line 28, column (j)
2. Net rental real estate income (loss) See Partner’s Instr. (Form 1065)
3. Other net rental income (loss)
Net income
Schedule E, line 28, column (g)
Net loss
See Partner’s Instr. (Form 1065)
4. Guaranteed payments
Schedule E, line 28, column (j)
5. Interest income
Form 1040, line 8a
6a. Ordinary dividends
Form 1040, line 9a
6b. Qualified dividends
Form 1040, line 9b
7. Royalties
Schedule E, line 4
8. Net short-term capital gain (loss)
Schedule D, line 5, column (f)
9a. Net long-term capital gain (loss)
Schedule D, line 12, column (f)
9b. Collectibles (28%) gain (loss)
28% Rate Gain Worksheet, line 4
(Schedule D Instructions)
See Partner’s Instr. (Form 1065)
9c. Unrecaptured section 1250 gain
10. Net section 1231 gain (loss)
See Partner’s Instr. (Form 1065)
11. Other income (loss)
Code
A Other portfolio income (loss)
B Involuntary conversions
C Sec. 1256 contracts & straddles
D Mining exploration costs recapture
E Cancellation of debt
F Other income (loss)
12. Section 179 deduction
13. Other deductions
A Cash contributions (50%)
B Cash contributions (30%)
C Noncash contributions (50%)
D Noncash contributions (30%)
E Capital gain property to a 50%
organization (30%)
F Capital gain property (20%)
G Investment interest expense
H Deductions—royalty income
I Section 59(e)(2) expenditures
J Deductions—portfolio (2% floor)
K Deductions—portfolio (other)
L Amounts paid for medical insurance

%

M
N
O
P
Q
R
S
T
U
V

Educational assistance benefits
Dependent care benefits
Preproductive period expenses
Commercial revitalization deduction
from rental real estate activities
Pensions and IRAs
Reforestation expense deduction
Domestic production activities
information
Qualified production activities income
Employer’s Form W-2 wages
Other deductions

17.

See Form 8582 Instructions
See Partner’s Instr. (Form 1065)
See Partner’s Instr. (Form 1065)
See Form 8903 instructions
Form 8903, line 7
Form 8903, line 15
See Partner’s Instr. (Form 1065)

Schedule SE, Section A or B
See Partner’s Instr. (Form 1065)
See Partner’s Instr. (Form 1065)

%

16.

See Partner’s Instr. (Form 1065)

14. Self-employment earnings (loss)
Note: If you have a section 179 deduction or any partner-level deductions, see
the Partner’s Instr. (Form 1065) before completing Schedule SE.
A Net earnings (loss) from
self-employment
B Gross farming or fishing income
C Gross non-farm income
15. Credits
A Low-income housing credit
(section 42(j)(5))
B Low-income housing credit (other)
C Qualified rehabilitation expenditures
(rental real estate)
D Other rental real estate credits
E Other rental credits
F Undistributed capital gains credit
G Credit for alcohol used as fuel

%

See Partner’s Instr. (Form 1065)
See Partner’s Instr. (Form 1065)
Form 6781, line 1
See Pub. 535
Form 1040, line 21 or Form 982
See Partner’s Instr. (Form 1065)
See Partner’s Instr. (Form 1065)

Form 4952, line 1
Schedule E, line 18
See Partner’s Instr. (Form 1065)
Schedule A, line 23
Schedule A, line 28
Schedule A, line 1 or Form 1040,
line 29
See Partner’s Instr. (Form 1065)
Form 2441, line 14
See Partner’s Instr. (Form 1065)

See Partner’s Instr. (Form 1065)

Form 1040, line 70; check box a
See Partner’s Instr. (Form 1065)

Code
Report on
H Work opportunity credit
See Partner’s Instr. (Form 1065)
I Welfare-to-work credit
J Disabled access credit
K Empowerment zone and renewal
community employment credit
Form 8844, line 3
L Credit for increasing research
activities
M New markets credit
See Partner’s Instr. (Form 1065)
N Credit for employer social security
and Medicare taxes
Form 1040, line 64
O Backup withholding
See Partner’s Instr. (Form 1065)
P Other credits
Foreign transactions
A Name of country or U.S.
possession
B Gross income from all sources
Form 1116, Part I
C Gross income sourced at partner
level
Foreign gross income sourced at partnership level
D Passive category
Form 1116, Part I
E General category
F Other
Deductions allocated and apportioned at partner level
G Interest expense
Form 1116, Part I
H Other
Form 1116, Part I
Deductions allocated and apportioned at partnership level
to foreign source income
I Passive category
Form 1116, Part I
J General category
K Other
Other information
L Total foreign taxes paid
Form 1116, Part II
M Total foreign taxes accrued
Form 1116, Part II
N Reduction in taxes available for
credit
Form 1116, line 12
Form 8873
O Foreign trading gross receipts
P Extraterritorial income exclusion
Form 8873
See Partner’s Instr. (Form 1065)
Q Other foreign transactions
Alternative minimum tax (AMT) items
A Post-1986 depreciation adjustment
See Partner’s Instr.
B Adjusted gain or loss
(Form 1065) and the
C Depletion (other than oil & gas)
Instructions for
D Oil, gas, & geothermal—gross income
E Oil, gas, & geothermal—deductions
Form 6251
F Other AMT items
Tax-exempt income and nondeductible expenses
A Tax-exempt interest income
Form 1040, line 8b
See Partner’s Instr. (Form 1065)
B Other tax-exempt income
See Partner’s Instr. (Form 1065)
C Nondeductible expenses
Distributions
See Partner’s Instr. (Form 1065)
A Cash and marketable securities
B Other property
See Partner’s Instr. (Form1065)
Other information
A Investment income
Form 4952, line 4a
B Investment expenses
Form 4952, line 5
C Fuel tax credit information
Form 4136
D Qualified rehabilitation expenditures
(other than rental real estate)
See Partner’s Instr. (Form 1065)
E Basis of energy property
See Partner’s Instr. (Form 1065)
F Recapture of low-income housing
credit (section 42(j)(5))
Form 8611, line 8
G Recapture of low-income housing
credit (other)
Form 8611, line 8
See Form 4255
H Recapture of investment credit
See Partner’s Instr. (Form 1065)
I Recapture of other credits
J Look-back interest—completed
Form 8697
long-term contracts
K Look-back interest—income forecast
Form 8866
method
L Dispositions of property with
section 179 deductions
M Recapture of section 179 deduction
N Interest expense for corporate
partners
O Section 453(l)(3) information
P Section 453A(c) information
See Partner’s Instr.
Q Section 1260(b) information
(Form 1065)
R Interest allocable to production
expenditures
S CCF nonqualified withdrawals
T Information needed to figure
depletion—oil and gas
U Amortization of reforestation costs
V Unrelated business taxable income
W Other information

18.

19.

20.

%

%

2