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Schedule K-1 (1065): Item L options

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📊 Step-by-Step Guide

Step 1: Choose the correct Tax Basis

Select the Tax Basis check box if the method of accounting used to compute the partner's capital account is based on the partnership's income and deductions for federal tax purposes.

Step 2: Choose the correct GAAP basis

Select the GAAP check box if it is based on Generally Accepted Accounting Principles (GAAP).

Step 3: Choose the correct 704(b) basis

Select the Section 704(b) book check box if it is based on the capital accounting rules under regulations section 1.704(b) (2)(iv).

Step 4: Use the Other option if needed

Select the Other check box if any other method is used to compute the partner's capital account. Attach a statement describing the method and showing how the partner's capital account was computed.

Tags: federal,form