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What is the purpose of Schedule K-1, Form 1065?

What is the purpose of Schedule K-1, Form 1065?

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Answer #1

Partnership partners are responsible for paying taxes on the business income. every partner is required to file an individual tax return reporting income, losses, deductions, and credits from the partnership business that the business reported on informational 1065 tax form.

the partnership must prepare a schedule k-1 to report each partner's share of these tax items. k-1s is to provide to the IRS with the partnership tax returns and also to each partner so that they can add the information to their own tax returns. the main purpose of k-1 1055 form is to provide the IRS all financial information related to a partnership like income, loses, deductions and credits.

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