jkelsey
Level 2
‎12-22-2021 05:19 PM

I have partners of a partnership that had a large increase in net revenue from schedule F this year. I'm not aware of anyway to average the income from a K-1 when it gets to the personal return. Does anyone have any advice on this?

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Terry53029
Level 15
Level 15
‎12-23-2021 08:32 AM

Use schedule J on personal 1040

jkelsey
Level 2
‎12-23-2021 09:18 AM

I've used the form before, just never to average income from a schedule K-1 but you've prompted me to review further. I jumped the gun asking but thank you for answering.

Terry53029
Level 15
Level 15
‎12-23-2021 10:53 AM

Income average can be used by flow through entities and individuals involved in farming and fishing. Here is link: https://www.irs.gov/instructions/i1040sj

Also: https://www.law.cornell.edu/cfr/text/26/1.1301-1

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jkelsey
Level 2
‎12-26-2021 07:33 PM

Thank you. This was helpful and I used the Schedule J for planning for these clients.