Friday, August 1, 2008

Some Examples

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):