1. Money

Schedule K-1

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Definition:

Schedule K-1 is used to report income, losses, dividend receipts, and capital gains of partners, or of shareholders of s corporations or from some trusts. A K-1 is prepared for each individual partner or shareholder, showing the share of income/losses, as well as dividends and other income/losses.

There are two versions of Schedule K-1, for partnerships (Form 1065, K-1), and for s corporations (Form 1120s-K-1).

Information from Schedule K-1 is included the partner's or shareholder's personal tax return on Schedule E - Supplemental Income or Loss.

The Schedule K-1 itself is not filed with the personal return, but is sent to the IRS along with the appropriate business tax form (Form 1065 for a partnership; form 1120S for an s corporation).

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