I reread your post and I believe you are Trying to complete a Schedule K-1 to pick up your income. In actuality you must first complete a Form 1065 and use this data to prepare Form 1065 K-1 for each partner. The Form 1065 and Form K-1s are returns that are filed with the IRS. Then the data from the K-1 is entered into your tax return. Schedule K-1 when properly filed out tells you exactly what your taxable income is and any other tax attributes that pass through to the partners. Sorry if i underestimated your knowledge but I want to be sure you get the right answer to your question. You are dealing with a very complex area of taxation. If you don't call me please contact a local tax person with expertise in Partnerships - not a generalist.
