VNFA Q&A: Schedule K-1 Tax Documents
Can you spend some time talking about Schedule K’s, specifically for individuals such as myself who own stock in a company that mails this tax document to partners. It’s a little confusing as to what you report to the IRS and when you do report it.
In recent years, many investments that have been made by investors include limited partnerships or Master Limited Partnerships, especially in energy. The partnership files a Form 1065 and reports the partners’ shares on a 1065 Schedule K-1. More recently, many of these partnerships are switching to corporations which will then convert to stock rather than partnership interests or units. Dividends paid on stock get reported on a 1099DIV. K-1s may be issued to shareholders of an S Corporation via a 1120S K-1 or to beneficiaries of estate and trusts using 1041 K-1. Click here to read the full answer on our website.