topic Do I have to file Partner's Schedule K-1 form 1065 in Business & farm

Do I have to file Partner's Schedule K-1 form 1065

dwalg2006 — Tue, 17 Mar 2020 20:38:41 GMT

Anyone can help me to find out if I have to file Partner's Schedule K-1 form 1065, thank you very much!

IRS form 1065 instruction "purpose of schedule k-1" is read as: "The partnership uses Schedule K-1 to report your share of the partnership's income, deductions, credits, etc. Keep it for your records. Do not file it with your tax return unless you are specifically required to do so. (See the instructions for Code O. Backup withholding, later.) The partnership files a copy of Schedule K-1 (Form 1065) with the IRS."

I don't see code "O" in any of my k-1 boxes, how can I know I am specifically required to do file? My k-1s are from ETF stock USO and BNO, there are big numbers in box 11 "other income" - code C "contracts and straddles" that seems taxable.

Many thanks!

Re: Do I have to file Partner's Schedule K-1 form 1065

KathrynG3 — Tue, 17 Mar 2020 20:56:15 GMT

Yes, you should file Schedule K-1 if you received your distributive share on Form K-1.

Please click the links for more details: USO, an ETF organized as a partnership

2019 Form 1065 Instructions for Schedule K-1, beginning on page 4 for PTP's.

For more information about ETFs, see this article from Fidelity: Types of ETFs and ETNs

Re: Do I have to file Partner's Schedule K-1 form 1065

dwalg2006 — Fri, 20 Mar 2020 15:27:07 GMT

Thank you so much, the IRS 1065 instruction make me confused, says:" Do not file it with your tax return
unless you are specifically required to do so." My understanding now is limited partners of ETF like USO or BNO are required to file k1 and pay tax even the fact of this "income" is not a real distribution. So the rule is in favor of corporations but bad for our small limited partners/share owners. Am I right? Please let me know if I am wrong. Thank you again!

Re: Do I have to file Partner's Schedule K-1 form 1065

DianeC958 — Sat, 21 Mar 2020 13:38:26 GMT

You include the information from your K-1 in your tax return.

Yes, you need to pay tax on the income reported on the K-1 even if you did not receive the income.

You do not need to send in the K-1 with your individual tax filing.

The IRS already has the K-1 from the partnership return being filed.