Schedule K1 Partner Share Income Deductions Credits, Form 8865 (2023)
Schedule K-1 (Form 8865) summarizes your individual share of income, deductions, and credits from a foreign partnership you hold an interest in. It's crucial for reporting these items accurately on your US tax return.
What is Schedule K-1 (Form 8865)?
Schedule K-1 is an integral part of Form 8865, filed by US persons with interests in foreign partnerships. It details your partner's share of various tax items, including:
- Income: Ordinary income, capital gains, foreign earned income, etc.
- Deductions: Business expenses, depreciation, depletion, etc.
- Credits: Foreign tax credits, investment credits, etc.
Who receives Schedule K-1 (Form 8865)?
Any US person who is a direct partner in a foreign partnership will receive Schedule K-1 from the partnership. This includes individuals, trusts, estates, and corporations.
Key things to know about Schedule K-1 (Form 8865):
Information reported:
- Schedule K: Provides an overview of the partnership's income, deductions, and credits.
- Schedule K-1: Details your individual share of these items based on your ownership percentage.
- Schedules K-2 and K-3: Introduced in 2021, these schedules focus specifically on international tax items for clearer reporting.
Purpose: The information on Schedule K-1 helps you accurately report your share of the partnership's tax items on your US tax return (e.g., Form 1040).
Filing deadline: The deadline to file Form 8865 and its schedules, including Schedule K-1, is generally the same as your individual tax return deadline (usually April 15th). However, extensions may be available.
For the current year's Form 8865, click here.