Summary of Changes

2010 Schedule K-1 (Form 1065), Partner’s Share of Income, Deductions, Credits,
etc.
Purpose: This is the first circulated draft of the 2010 Schedule K-1 (Form 1065) for your
review and comment. The major changes are described below.
TPCC Meeting: None, but can be arranged if requested.
Prior Version: The 2009 Schedule K-1 (Form 1065) is available at:
http://www.irs.gov/pub/irs-pdf/f1065sk1.pdf.
Instructions: The 2010 Instructions for Schedule K-1 (Form 1065) will be circulated at a
later date. The 2009 Instructions for Schedule K-1 (Form 1065) are available at:
http://www.irs.gov/pub/irs-pdf/i1065sk1.pdf.
Other Products: Circulations of draft tax forms, instructions, notices, and publications
are posted at: http://taxforms.web.irs.gov/Circulations/index.htm.
Comments: Please email, fax, call, or mail any comments to me by June 24, 2010.
Comments submitted by telephone must be followed up in writing to be considered. Send
a copy of any email comment to the form’s reviewer, Sharon Dewsbury, at
[email protected].
Max Rogel
Tax Forms and Publications
SE:W:CAR:MP:T:B:C
Email: [email protected]
Phone: 202-622-3878
Fax: 202-622-3262

Major Changes
-On page 2, Box 13, code O, we changed the reference from “line 14” to “line 12” to
reflect the Form 2441 WRN of 3/19/2010.
-On page 2, Box 13, code U, we changed the reference from "line 7" to "line 7b" to
reflect the Form 8903 WRN of 4/1/2010. (The instructions will request a new attachment
for code U if the amount for code U includes oil-related qualified production activities
income to be reported on the Form 8903, line 7a.)
-On page 2, Box 13, code V, we changed the reference from "line 15" to "line 16" to
reflect the Form 8903 WRN of 4/1/2010.
-On page 2, Box 15, code H, we changed the reference from "line 70" to "line 71" to
reflect the Form 1040 WRN of 4/27/2010.
-We did not remove the following expired codes because we expect extenders legislation
to extend the underlying provisions. (If extenders legislation is not passed, we may need
to remove or "reserve" these codes.):

--On page 2, Box 13, code G is being retained (see section 131 of House-passed and
section 114 of Senate-passed extenders bill (H.R. 4213)).
--On page 2, Box 13, code Q is being retained (see section 202 of the House-passed and
section 159 of the Senate-passed extenders bill (H.R. 4213)).
--On page 2, Box 15, code L is being retained (see section 201 of the House-passed and
section 157 of the Senate-passed extenders bill (H.R. 4213)).
--On page 2, Box 15, code M is being retained (see section 111 of the House-passed and
section 131 of the Senate-passed extenders bill (H.R. 4213)).

Version A, Cycle 1

651110
Final K-1

2010

Schedule K-1
(Form 1065)
Department of the Treasury
Internal Revenue Service

ending

A

B

C
D

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

Information About the Partnership

7

Royalties

Foreign transactions

8

Net short-term capital gain (loss)

9a

Net long-term capital gain (loss)

17

Alternative minimum tax (AMT) items

IRS Center where partnership filed return
Check if this is a publicly traded partnership (PTP)

Information About the Partner

Partner’s identifying number

9b

Collectibles (28%) gain (loss)

F

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

9c

Unrecaptured section 1250 gain

10

Net section 1231 gain (loss)

11

Other income (loss)

Section 179 deduction
Other deductions

G

General partner or LLC
member-manager

H

Domestic partner

DRAFT AS OF
June 2, 2010
18

Tax-exempt income and
nondeductible expenses

19

Distributions

20

Other information

Limited partner or other LLC
member
Foreign partner

I

What type of entity is this partner?

12

J

Partner’s share of profit, loss, and capital (see instructions):
Beginning
Ending

13

Profit

%

%

Loss

%

%

Capital

%

%

Partner’s share of liabilities at year end:
.

.

.

.

.

.

Qualified nonrecourse financing

.

$

Recourse

.

$

.

$

Current year increase (decrease)

.

$

Withdrawals & distributions

.

.

$ (

.

.

$

.

.

.

.

.

.

14

$

*See attached statement for additional information.

Partner’s capital account analysis:
Beginning capital account .

.

Capital contributed during the year

Ending capital account .

Tax basis

.

GAAP

Self-employment earnings (loss)

$

)

Section 704(b) book

Other (explain)

For IRS Use Only

Nonrecourse

M

16

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

Part II

L

Credits

Partnership’s employer identification number

E

K

15

, 2010
, 20

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

OMB No. 1545-0099

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

For calendar year 2010, or tax
year beginning

Amended K-1

Did the partner contribute property with a built-in gain or loss?
Yes
No
If "Yes", attach statement (see instructions)

For Paperwork Reduction Act Notice, see Instructions for Form 1065.

Cat. No. 11394R

Schedule K-1 (Form 1065) 2010

Version A, Cycle 1

Schedule K-1 (Form 1065) 2010

Page

This list identifies the codes used on Schedule K-1 for all partners and provides summarized reporting information for partners who file Form 1040.
For detailed reporting and filing information, see the separate Partner’s Instructions for Schedule K-1 and the instructions for your income tax return.
1. Ordinary business income (loss). Determine whether the income (loss) is
passive or nonpassive and enter on your return as follows.
Report on
See the Partner’s Instructions
Passive loss
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 the Partner’s Instructions
3. Other net rental income (loss)
Net income
Schedule E, line 28, column (g)
Net loss
See the Partner’s Instructions
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
Schedule E, line 4
7. Royalties
8. Net short-term capital gain (loss)
Schedule D, line 5, column (f)
Schedule D, line 12, column (f)
9a. Net long-term capital gain (loss)
28% Rate Gain Worksheet, line 4
9b. Collectibles (28%) gain (loss)
(Schedule D instructions)
9c. Unrecaptured section 1250 gain
See the Partner’s Instructions
10. Net section 1231 gain (loss)
See the Partner’s Instructions
11. Other income (loss)
Code
A Other portfolio income (loss)
See the Partner’s Instructions
B Involuntary conversions
See the Partner’s Instructions
C Sec. 1256 contracts & straddles
Form 6781, line 1
D Mining exploration costs recapture See Pub. 535
E Cancellation of debt
Form 1040, line 21 or Form 982
See the Partner’s Instructions
F Other income (loss)
12. Section 179 deduction
See the Partner’s Instructions
13. Other deductions
A Cash contributions (50%)
B Cash contributions (30%)
C Noncash contributions (50%)
See the Partner’s
D Noncash contributions (30%)
E Capital gain property to a 50%
Instructions
organization (30%)
F Capital gain property (20%)
G Contributions (100%)
Form 4952, line 1
H Investment interest expense
I Deductions—royalty income
Schedule E, line 18
J Section 59(e)(2) expenditures
See the Partner’s Instructions
K Deductions—portfolio (2% floor)
Schedule A, line 23
L Deductions—portfolio (other)
Schedule A, line 28
M Amounts paid for medical insurance Schedule A, line 1 or Form 1040, line 29
N Educational assistance benefits
See the Partner’s Instructions
O Dependent care benefits
Form 2441, line 12
P Preproductive period expenses
See the Partner’s Instructions
Q Commercial revitalization deduction
See Form 8582 instructions
from rental real estate activities
See the Partner’s Instructions
R Pensions and IRAs
S Reforestation expense deduction
See the Partner’s Instructions
T Domestic production activities
See Form 8903 instructions
information
U Qualified production activities income Form 8903, line 7b
V Employer’s Form W-2 wages
Form 8903, line 16
See the Partner’s Instructions
W Other deductions
14. Self-employment earnings (loss)
Note. If you have a section 179 deduction or any partner-level deductions, see the
Partner’s Instructions before completing Schedule SE.
A Net earnings (loss) from
Schedule SE, Section A or B
self-employment
See the Partner’s Instructions
B Gross farming or fishing income
C Gross non-farm income
See the Partner’s Instructions
15. Credits
A Low-income housing credit (section
See the Partner’s Instructions
42(j)(5)) from pre-2008 buildings
B Low-income housing credit (other)
See the Partner’s Instructions
from pre-2008 buildings
C Low-income housing credit (section
42(j)(5)) from post-2007 buildings
Form 8586, line 11
D Low-income housing credit (other)
from post-2007 buildings
Form 8586, line 11
E Qualified rehabilitation
expenditures (rental real estate)
See the Partner’s Instructions
F Other rental real estate credits
G Other rental credits
H Undistributed capital gains credit
Form 1040, line 71; check box a
I Alcohol and cellulosic biofuel fuels
Form 6478, line 7
credit
J Work opportunity credit
Form 5884, line 3

Code

Report on

K
L

16.

Disabled access credit
See the Partner’s Instructions
Empowerment zone and renewal
Form 8844, line 3
community employment credit
M Credit for increasing research activities See the Partner’s Instructions
N Credit for employer social security
Form 8846, line 5
and Medicare taxes
O Backup withholding
Form 1040, line 61
P Other credits
See the Partner’s Instructions
Foreign transactions
A Name of country or U.S.
possession
Form 1116, Part I
B Gross income from all sources
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
Form 1116, Part I
G Interest expense
Form 1116, Part I
H Other
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
Form 1116, Part II
M Total foreign taxes accrued
N Reduction in taxes available for credit Form 1116, line 12
O Foreign trading gross receipts
Form 8873
P Extraterritorial income exclusion
Form 8873
Q Other foreign transactions
See the Partner’s Instructions
Alternative minimum tax (AMT) items
A Post-1986 depreciation adjustment
See the Partner’s
B Adjusted gain or loss
Instructions and
C Depletion (other than oil & gas)
the Instructions for
D Oil, gas, & geothermal—gross income
Form 6251
E Oil, gas, & geothermal—deductions
F Other AMT items
Tax-exempt income and nondeductible expenses
A Tax-exempt interest income
Form 1040, line 8b
B Other tax-exempt income
See the Partner’s Instructions
C Nondeductible expenses
See the Partner’s Instructions
Distributions
A Cash and marketable securities
See the Partner’s Instructions
B Distribution subject to section 737
C Other property
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
See the Partner’s Instructions
(other than rental real estate)
E Basis of energy property
See the Partner’s Instructions
F Recapture of low-income housing
Form 8611, line 8
credit (section 42(j)(5))
G Recapture of low-income housing
Form 8611, line 8
credit (other)
H Recapture of investment credit
See Form 4255
I Recapture of other credits
See the Partner’s Instructions
J Look-back interest—completed
See Form 8697
long-term contracts
K Look-back interest—income forecast
See 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
Q Section 1260(b) information
See the Partner’s
R Interest allocable to production
Instructions
expenditures
S CCF nonqualified withdrawals
T Depletion information—oil and gas
U Amortization of reforestation costs
V Unrelated business taxable income
W Precontribution gain (loss)
X Section 108(i) information
Y Other information

}
}
}

DRAFT
AS
OF
}
}
June 2, 2010

}

17.

18.

19.

20.

}

}

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