neilbrink Posted April 1, 2010 Report Share Posted April 1, 2010 I have a client with a Trust K-1 that shows an amount at line 14-F as the only income on the form. This line indicates that the income is coming from Farming, and that amount is transferred to the correct line on Schedule E, line 42, but it does not show that income on the 1040 itself. Shouldn't that amount of income also be showing on line 6 (Ordinary Income)of the K-1? A member of the family completed this trust, and I am not sure he knew exactly what he was doing. Thanks. Neil Quote Link to comment Share on other sites More sharing options...
neilbrink Posted April 3, 2010 Author Report Share Posted April 3, 2010 I would like to run this by again to see if anyone has a response. Thanks Neil Quote Link to comment Share on other sites More sharing options...
Cathy Posted April 3, 2010 Report Share Posted April 3, 2010 I have a client with a Trust K-1 that shows an amount at line 14-F as the only income on the form. This line indicates that the income is coming from Farming, and that amount is transferred to the correct line on Schedule E, line 42, but it does not show that income on the 1040 itself. Shouldn't that amount of income also be showing on line 6 (Ordinary Income)of the K-1? A member of the family completed this trust, and I am not sure he knew exactly what he was doing. Thanks. Neil Neil, Line 14F on the K-1 isn't income that would flow to the 1040. It's an "information" figure instead. Cathy Quote Link to comment Share on other sites More sharing options...
neilbrink Posted April 3, 2010 Author Report Share Posted April 3, 2010 Neil, Line 14F on the K-1 isn't income that would flow to the 1040. It's an "information" figure instead. Cathy Thank you, Cathy That is my understanding also. So if this was income that WAS supposed to flow to the 1040 Return, should it not have also been entered on Line 6 of the K-1? This "information" was based on income that I assume should have shown up on the K-1 somewhere. Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted April 3, 2010 Report Share Posted April 3, 2010 That is strange, isn't it? Out of curiousity, I clicked on a K-1 entry for 1041 and it says it transfer to, as you probably know, Sch. E, Ln 42 & Sch. SE, Opt Wkst. So I checked the instructions for Sch. E, Ln. 42 and it just says something about not being charged a penalty for underpayment of estimated tax if... Do you think is should go to a Sch F? It does seem strange if it is information only that Sch SE might be involved and the filer wouldn't be charged an underpayment penalty. Hmmmmm.... Quote Link to comment Share on other sites More sharing options...
jainen Posted April 6, 2010 Report Share Posted April 6, 2010 >>I would like to run this by again to see if anyone has a response.<< In my opinion, you will never find an answer to this. The K-1 is wrong. Quote Link to comment Share on other sites More sharing options...
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