K-1 from a Cooperative

Forum|Forum|4 years ago
April 8, 2022
3 replies
16 views

Hi ProSeries family,

Does anyone have an insight about this find of return? A have a client who is a member of a cooperative and she got a K-1 (form 1065). She is a limited partner and her Part III Partner's share is the following:

Box 1. Ordinary Business Income $3,002

Box 4a. Guaranteed Pymts $22,166. (this is also the Total Guaranteed - Box 4c)

Box 14. Self Employment Earnings A.$25,168. B.$22,160

Since she is not self-employed but a member of a cooperative, is she able to make deductions? Since she has self-employment earning, can she fill out a Schedule C? If not, and if she can enter deductions, where would she?

I appreciate any help on this.

Rosario

ProSeries Professional

This topic has been closed for replies.

Best answer by jeffmcpa2010

If she has expenses she paid personally on behalf of the partnership (cooperative- whatever it is called) that will not be reimbursed, on the Schedule K-1, under line 20Z there is a quickzooom to enter unreimbursed partnership expenses (UPE) where they can be entered and deducted.

IRonMaN

Level 15

Take the numbers provided and enter them on the K-1 worksheet in the client's 1040.

Slava Ukraini!

J

jeffmcpa2010Answer

Level 10

If she has expenses she paid personally on behalf of the partnership (cooperative- whatever it is called) that will not be reimbursed, on the Schedule K-1, under line 20Z there is a quickzooom to enter unreimbursed partnership expenses (UPE) where they can be entered and deducted.

T

TaxSageAuthor

Level 3

Thank you, JeffmCPA2010. I do see the 20Z worksheet and, of course, it does not look at all like an Sch. C. Can the client deduct home office, internet, and mileage, etc. similarly to a Sch C?

Thanks so much for your time.

BobKamman

Level 15

Cooperatives can be an apartment building in New York City or a collection of silos in Iowa. Tell us what is really going on here. And don't assume the K-1 is correct. Paying Social Security tax when not eligible for benefits based on real work, is just as illegal as tax evasion.

T

TaxSageAuthor

Level 3

Hi BobKamman,

It is a cooperative of people that offer similar services. This one is more admin; I have seen other for interpreters. The cooperative gets contracted by other organizations. That is why this k-1 shows self-employment income.

Thanks for your help.

BobKamman

Level 15

If she is offering services, it sounds like self employment and it should find its way to Line 2 of Schedule SE.

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