Common questions about partnership passthrough K-1s in ProConnect Tax

1. Go to Input Return ⮕ Schedule K ⮕ Other Schedule K Items.
2. Scroll down to the Deductions section.
3. Locate the Other Deductions field.
4. Select the desired code from the K-1 Code dropdown menu.
5. Enter a Description.
6. Enter the Federal amount, then a Description, St. if diff., or State if applicable.
7. Select OK after entering all items.
8. Make sure the amounts on the Schedule K (Form 1065) and Schedule K-1, Line 13 are correct.
9. Make sure the allocations to the partners on the Schedule K-1, Box 13 are correct. If you need to change any of the amounts:
   1. Select Special Allocations. 
   2. Select the Deductions (Sch. K-1, Boxes 12-13)

If the Other Deductions are from a passthrough entity:

1. Go to Input Return ⮕ Schedule K ⮕ Passthrough K-1's.
2. Select the Lines 12-19 tab.
3. Scroll down to Other Deductions(13).
4. Enter the amount in the Other deductions.
5. Repeat steps 1-9 above.

1. Go to Input Return ⮕ Schedule K ⮕ Other Schedule K Items. 
2. Locate the Other Income (loss) field.
3. Select the desired code from the K-1 Code dropdown menu.
4. Enter a Description.
5. Enter the Federal amount; then a Description, St. if diff., or State if applicable.
6. Select OK after entering all items.
7. Make sure the amounts on the Schedule K (Form 1065) and Schedule K-1 are correct.
8. Make sure the allocations to the partners on Schedule K-1, Box 11 are correct. If you need to change any of the amounts:
   1. Select Special Allocations. 
   2. Select the Other Income. 

If the Other Income (Loss) is from a passthrough entity:

1. Go to Input Return ⮕ Schedule K ⮕ Passthrough K-1's.
2. Select the Lines 1-11 tab.
3. Scroll to Other Income(11).
4. Enter the amount in the Other Income.
5. Repeat steps 1–8 above.

Entering cash charitable contributions:

1. Go to Input Return ⮕ Schedule K ⮕ Other Schedule K Items. 
2. Under the Income & Deductions tab scroll down to the Deductions section.
3. Under the Charitable Contributions, you'll see two options for Cash. Enter the amounts as either 60% limitation or 30% limitation. See IRS Pub. 526 for help determining if the donation is a 60% or a 30% limit.

Enter noncash charitable contributions:

Noncash contributions are located on, Noncash Contributions, but you can adjust them in Other Schedule K Items.

Depending on when the noncash contributions were made, they may be subject to the 50% and 30% adjusted gross income (AGI) limits. Limitations apply at the partner's level.

1. Go to Input Return ⮕ Miscellaneous Forms ⮕ Noncash Contributions (8283)
2. Enter any applicable items.

Adjusting noncash contributions

Adjustments appear on Schedule K, but not on Form 8283:

1. Go to Input Return ⮕ Schedule K ⮕ Other Schedule K Items
2. Under the Income & Deductions tab scroll down to the Deductions section.
3. Under the Charitable Contributions, Noncash subsection, enter your noncash charitable contribution in the following fields:
   • 50% limitation [Adjust]
   • 30% limitation [Adjust]
   • 30% capital gain property [Adjust]
   • 20% capital gain property [Adjust]

1. Go to Input Return ⮕ Schedule K ⮕ Passthrough K-1's.
2. Select the Lines 12-19 tab.
3. Scroll to Other Deductions (13).
4. Under the Charitable Contributions section, enter your cash or noncash contributions.
   • For cash:
     • 50% limitation (A)
     • 30% limitation (B)
   • For noncash:
     • 50% limitation (C)
     • 30% limitation (D)
     • 30% capital gain property (E)
     • 20% capital gain property (F)

Schedule M-1 and Schedule M-2 considerations

ProConnect Tax doesn't automatically adjust the difference between item cost/basis and item fair market value (FMV).

The FMV appears on Schedule K and flows through Schedule M-1 and Schedule M-2 into the "Partner Capital Accounts" balance sheet.

If the contributed item was carried on the books at cost, make a manual M-1 or M-2 adjustment to make Schedule M-1, Line 1 conform to "Book income," or Schedule M-2, Line 9 conform to "Ending Capital Accounts."