Enrolled Agent Exam [Part 2] 11, Schedule K-1 (Form 1065) — Partner Reporting

About this episode

This episode discusses the taxation of partners as reported on Schedule K-1 and its implications for the Enrolled Agent Exam.

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - Partners are taxed on their distributive share of income shown on Schedule K-1, not on cash distributions they receive. - Separately stated items, like capital gains or charitable contributions, retain their character and flow through to the partner's individual return. - A general partner's share of ordinary business income in Box 14 is typically subject to self-employment tax, while a limited partner's is not. - Box 20, Code Z, provides the necessary information to calculate the Section 199A QBI deduction, not the deduction amount itself. - The Schedule K-1 acts as a crucial informational bridge, linking the partnership's Form 1065 to the partner's Form 1040. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep

People in this episode

Host: Ran Chen

Topics covered

• Enrolled Agent Exam
• Schedule K-1
• Partner Reporting
• Taxation
• Business Income
• Self-Employment Tax

Keywords

• Enrolled Agent Exam
• Schedule K-1
• Form 1065
• taxation
• self-employment tax
• QBI deduction
• capital gains
• charitable contributions

Mentioned in this episode

Organizations: Open Exam Prep, YouTube Channel

Products: Schedule K-1, Form 1065, Form 1040, Section 199A QBI deduction, capital gains, charitable contributions

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