1065 Partnership - 2 K1's

[Yardley CPA]

I prepare one 1065 each year. The partnership is made up of two active partners who send K1's to the partnership. This year, only one of the partners was active, the other was dormant and did not issue any K1. I have little experience with 1065's. I assume nothing needs to be done with the dormant K1 and the 1065 will reflect the active K1's income?

[grandmabee]

I prepare one 1065 each year. The partnership is made up of two active partners who send K1's to the partnership. This year, only one of the partners was active, the other was dormant and did not issue any K1. I have little experience with 1065's. I assume nothing needs to be done with the dormant K1 and the 1065 will reflect the active K1's income?

a k-1 should be sent to each partner each year they are in the partnership. if they are passive this year then list as passive. but they still have their capital account. still part owner of business. the partnership issues the K-1's to the partners.

[BulldogTom]

I am confused. Was that a mis-statement on your part when you said each partner SENDS a K-1 to the partnership? That does not sound correct.

Tom

Lodi, CA

[kcjenkins]

I prepare one 1065 each year. The partnership is made up of two active partners who send K1's to the partnership. This year, only one of the partners was active, the other was dormant and did not issue any K1. I have little experience with 1065's. I assume nothing needs to be done with the dormant K1 and the 1065 will reflect the active K1's income?

This one has me totally confused. The Partnership sends K-1s to the partners, not the other way around. Unless the partners are other partnerships? Could you give us more details?