[farhan1426]

NINJA Question –

Ninja Notes page 30 say 179 expense is not deductible on schedule K but instead flow to K-1. However form 1065 schedule K line 12 is for the 179 deduction.

Also same page says 1231 G/L not counted as income on schedule K but instead flow to K-1. However form 1065 schedule K line 10 is for the 1231 G/L.

Perhaps I am just misunderstanding what this page is trying to say?

FAR: 11/21/13: 84 PASSED
AUD: 08/29/14: 52 11/26/14: 84 PASSED
BEC: 01/24/15: 75 PASSED
REG: 02/28/15: 65 05/20/15: 82 PASSED

I. AM. DONE!

[Gatorbates]

It's not part of the calculation of NI/(loss) to be distributed to the partners (box 1 of the K-1). Instead, it is isolated separately, and flows through directly to each partner on the K-1 (can't remember which box).

Each member may have other different activities on their own 1040 that effects whether this deduction can be taken or not. Therefore, it is isolated, and not included in NI/(loss)

Licensed Florida CPA:
B: 71, 73, 79
A: 83
R: 78 (expired), 77
F: 74, 74, 80

It's finally freaking over.

[farhan1426]

Thanks Gator! Makes sense now.

FAR: 11/21/13: 84 PASSED
AUD: 08/29/14: 52 11/26/14: 84 PASSED
BEC: 01/24/15: 75 PASSED
REG: 02/28/15: 65 05/20/15: 82 PASSED

I. AM. DONE!

[Author]

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