Partnerships and K-1 Income

[dmb]

It was always my understanding that for partnerships and LLCs that did not use W-2s that the earned income would be the partners' net K-1 income. What i was recently made aware of is that net K-1 income is net of any Unreimbursed partnership expenses from the Schedule E (Form 1040). I was wondering if this is correct and if i should be requesting the Schedule E info in addtion to the K-1 income?? thanks.

[David MacLennan]

I developed a worksheet that details the earned income calcuation for partners in a partnership. It includes references to line items on the tax returns. Once it is completed, I usually include it in my reports so a partner can see how his comp in the allocation was derived. It also serves as a check on my software. I can email you a copy if you like.

[dmb]

Thanks for the response, I would greatly appreciate a copy of the worksheet. Thanks.

[Guest Jim Murphy]

I was searching for information on partnerships, K-1 amounts and net earned income and came across this thread. If you still have this worksheet, I would very much appreciate it if you could fax it to me at 201-583-2626. Thanks.

[Archimage]

Could you post it on this thread? That would be great!

[Earl]

an email would be greatly appreciated. and very useful. thanks in advance.