I
f you have an entry in Box 5 of Schedule K-1, the Partnership had interest income (or the Corporation had dividend income or the Estate Trust had portfolio/non-business income).
Since interest/dividend/portfolio income is passive, non-business income, it is subject to different tax treatment than other types of income and must be reported separately on the K-1 (and your tax return).
If you have a dollar amount in box 5 of your Schedule K-1, you had one of these types of income.