Investopedia

Continue to Site »

Schedule K-1

Filed Under » ,
Dictionary Says

Definition of 'Schedule K-1'

A tax document used to report the incomes, losses and dividends of a business's partners or S corporation's shareholders. Rather than being a financial summary for the entire group, the Schedule K-1 document is prepared for each partner or shareholder individually. For an S Corporation, Form 1120S is filled out, while for a partnership, Form 1065 is submitted.

Investopedia Says

Investopedia explains 'Schedule K-1'

While not filed with an individual partner or shareholder's tax return, financial information found in Schedule K-1 is sent to the IRS along with either Form 1120S or Form 1065. Because the tax treatment of partnerships and other business types falling under Schedule K-1 can be different than normal income, investors should pay close attention since income earned from this sort of investing can trigger an alternative minimum tax.

Articles Of Interest

  1.

    How To Cut Your Alternative Minimum Tax

    Save yourself money by lowering the amount of tax you owe.

  2. Don't Let Inaccurate Tax Forms Get You Audited!

    Copying in numbers directly from your tax forms can end up with you paying more (or less) taxes than you owe.

  3. Avoid An Audit: 6 "Red Flags" You Should Know

    Don't make yourself a target - steer clear of these attention-grabbing tax-filing practices.

  4. Examining A Career As An Auditor

    Stricter government regulations have put auditing professionals in demand.

  5. An Inside Look At Internal Auditors

    Find out why these number crunchers are part of every chief officer's dream team.

  6. Uncovering A Career In Forensic Accounting

    Does a job as a financial sleuth sound interesting to you? Dig in to learn more.

  7. There Are New REITs On The Horizon

    For investors, the surge in new REIT activity is providing some pretty interesting dividend opportunities.

  8. 5 ETFs Flaws You Shouldn't Overlook

    Despite their popularity, exchange traded funds have some drawbacks that investors should know about.

  9. How are capital gains and dividends taxed differently?

    The U.S. tax code gives similar treatment to dividends and capital gains, although this will change slightly in 2013. Currently, ordinary dividends and short-term capital gains those on assets ...

  10. Dividend Facts You May Not Know

    Discover the issues that complicate these payouts for investors.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  2. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  3. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  4. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  5. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  6. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.
Trading Center