Question

Bryan and Gayle are equal partners in BG Partnership. The partnership reports the following items of income and expense:

Ordinary income from operations	$	17,500
Interest income		6,800
Long-term capital gains		32,000
§ 179 expense		50,000
Charitable contributions		5,000

1. Which of these items are considered separately stated items? On what form will these items be reported to the partners?
2. Where will these amounts be reported by the partners?

Answer 1

Ans: Except one i.e. Ordinary Income from Operations will not be considered as Separately Stated Items.

Particulars	Amount($)
Interest Income	6,800
Long term Capital gains	32,000
§ 179 expense	50,000
Charitable Contributions	5,000
Total	93,800
And All the items will be reported On Schedule K-1 and will be Considered as Separately Stated Items

Ans: 2.

A), Interest Income will be Reported on Schedule B on Form 1040

B). Long term Capital gains will be Reported on Schedule D on Form 1040

C). § 179 expense will be Reported on Schedule E page 2 on Form 1040

D). Charitable Contributions will be Reported on Schedule A on Form 1040