Partnership Ordinary Income and Separately Stated Items

Free CPA REG (Taxation & Regulation) lesson in Federal Taxation of Entities. 20 min read, ~3,066 words.

Form 1065 is an information return; the partnership pays no tax. Each partner's K-1 carries their distributive share of every income, deduction, gain, loss, and credit item. Separately stated items retain character at the partner level: capital gains/losses, Section 1231, dividends, portfolio interest, charitable contributions, Section 179, foreign taxes, tax-exempt...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

Learning objectives

• V.D1

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