In addition to the information in postings below, here are some instructions and examples that should help with oil and gas working interest limited partnership tax preparation:
Form 1065 K-1 entry for General partner Self Employment income goes in box 14 code A and percentage depletion info for all partners goes in Box 20 code T:
Entries on back of 1040 Schedule E for a sample working interest limited partner, based on K-1 Box 1 Business income and Box 20 Code T (general partner 1040 Schedule E entries would go under nonpassive columns):
IRS instructions for reporting SE earnings on 1065 K-1 and 1040 Schedule SE:
Sample Schedule SE based on K-1 box 14 code A (Note that figures are less than K-1 Box 14 code A after depletion deduction so we attached an explanation as instructed):
Friday, August 1, 2008
Subscribe to:
Posts (Atom)