How It Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask William Ellis, CPA Your Own Question

William Ellis, CPA
William Ellis, CPA, CPA
Category: Tax
Satisfied Customers: 296
Experience:  Over 15 years of experience in public accounting
50200401
Type Your Tax Question Here...
William Ellis, CPA is online now
A new question is answered every 9 seconds

My partnership K-1 reports box 11 items, Code F such as other

Resolved Question:

My partnership K-1 reports box 11 items, Code F such as other ordinary income, net IRC Sect 475 Mark-to-market income, net irc section 988 currency loss, and net swap income. Where do I report these on my tax return.
Submitted: 4 years ago.
Category: Tax
Expert:  William Ellis, CPA replied 4 years ago.

That information is supposed to be included in the boxes above, as well. You should enter the information in the appropriate boxes as they relate to the K-1 because this is what the IRS will be looking for.


Don't worry about the miscellaneous information.

JACUSTOMER-35tr5vdt- :

Enter in the "appropriate boxes" is already in the instructions, so this isn't the information I'm looking for. The items are entered in box 11, code F as on the K-1, but where else do I enter them on my tax return. For example, Box 5 "Interest Income" is "appropriately" entered on Sch B, line 8a; Box 9a "Net long term capital gains" are "appropriately" entered on Sch D; etc. So where are box 11 "ordinary income, net IRC Sect 475 mark to market income, net IRC sect. 988 currency losses, and net swap income appropriately entered--Sch E? 1040 line 21?; form 4797?, somewhere else?

Expert:  William Ellis, CPA replied 4 years ago.

Code F refers to specific capital transactions. If you are using tax software that allows you to enter the code letter for Box 11, the amounts should properly flow to your Sch D. Otherwise, look at the notes on the following pages to see whether the items are considered long-term or short-term. Net short-term items will be entered on Line 5, and net long-term items will be entered on Line 12 of your Sch D. I apologize for my incomplete answer earlier. At times, I forget that people aren't using software with the same sophistication that I'm accustomed to using.

Customer: replied 4 years ago.

I know where capital gains are entered (with or without software). I'm concerned about ordinary income, net IRC Sect 475 mark to market income, net IRC sect. 988 currency losses, and net swap income from line 11 Code F.

Expert:  William Ellis, CPA replied 4 years ago.

According to the instructions for Form 1065, Sch K-1, pp. 7-8, referring to Line 11, Code F, these specific items are not mentioned. Nearly everything that is mentioned is treated as a capital transaction and handled on Lines 5 and 12 of your Sch D. Read it for your self at http://www.irs.gov/pub/irs-pdf/i1065sk1.pdf. If the notes included with your K=1 do not identify which of these should be treated as capital transactions, you should enter the net of these hedging activities on Line 21 of your 1040, subject to SE tax.

Customer: replied 4 years ago.

You are suggesting that I use line 21 of 1040, but I don't understand why it's subject to self employment tax. Wouldn't self employment earnings have been shown in box 14 of the K-1?

Expert:  William Ellis, CPA replied 4 years ago.

Hedging securities under those codes are treated as inventory items. This means that their sale falls within the ordinary activities of the Partnership which makes the income subject to self-employment tax.

William Ellis, CPA, CPA
Category: Tax
Satisfied Customers: 296
Experience: Over 15 years of experience in public accounting
William Ellis, CPA and 9 other Tax Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    572
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    572
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3053
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3279
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    8219
    Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2824
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2234
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
 
 
 
Chat Now With A Tax Professional
William Ellis, CPA
William Ellis, CPA
Tax Professional
296 Satisfied Customers
Over 15 years of experience in public accounting