Get Invoice-template-service-2tax-basic.xlsx. Partner's Instructions For Schedule K-1 (form 1065)

Line 19C - Other Property - Amounts reported in Box 19, Code C include any property distributed to the taxpayer that is not cash, marketable securities or property that was contributed to the partnership by another partner.

What is Schedule K-1? Schedule K-1 is a schedule of IRS Form 1065, U.S. Return of Partnership Income. It's provided to partners in a business partnership to report their share of a partnership's profits, losses, deductions and credits to the IRS.

Code C Other Property - This amount includes any property distributed to the taxpayer that is not cash, marketable securities or property that was contributed to the partnership by another partner. These items reduce the basis that the taxpayer has in the partnership and are not reported on the tax return directly.

How is this number calculated? The amount on line 14c is non-farm income. It is needed for the partners to figure their net earnings from self-employment under the nonfarm optional method on their 1040 returns.

Line 16, code C, or line 14, code C—Gross income sourced at partner or shareholder level. This line includes income from the sale of eligible personal property (most personal property other than inventory, depreciable property, and certain intangible property).

If you received a Schedule K-1 (Form 1065) from a partnership, you can enter this in your account by going to: Federal Section. Income -Select My Forms. Less Common Income. K-1 Earnings. Schedule K-1 Form 1065.

Generally, the amount reported on Schedule K-1 (1065), Box 14, Code C Gross Nonfarm Income is not used on the individual income tax return. This amount would only be used if you are using the nonfarm option method for calculating your self-employment tax on Schedule SE.

Code C - Nondeductible expenses Amounts reported as Code C are not considered deductible as these are expenses paid or incurred by the partnership. You will use this amount to adjust your basis of interest in the partnership.