if the owner is the S-corp it goes on the S-corp return.
if the line 1 is the only line on the 1065
use line 5 - Ordinary Income (Loss) From a Partnership,
Enter the ordinary income (loss) shown on Schedule K-1 (Form
1065). Report the partnership's name, address, and EIN on a
separate statement attached to this return. If the amount entered
is from more than one source, identify the amount from each
source.
Don't include portfolio income or rental activity income (loss)
from a partnership, estate, or trust on this line. Instead, report
these amounts on Schedules K and K-1, or on line 20a of Form
8825 if the amount is from a rental real estate activity.
Ordinary income or loss from a partnership that is a publicly
traded partnership isn't reported on this line. Instead, report the
amount separately on line 10 of Schedule K and in box 10 of
Schedule K-1 using code ZZ.
Treat shares of other items separately reported on
Schedule K-1 issued by the other entity as if the items were
realized or incurred by this corporation.
If there is a loss from a partnership, the amount of the loss
that may be claimed by the S corporation is subject to the basis
limitations.
If the tax year of the S corporation doesn't coincide with the
tax year of the partnership include the ordinary income/loss in the tax year in which the
other entity's tax year ends.
