IRS tax forms will provide you with explanations and examples of several of the main income and expense reporting documents.
We will take a look at Schedule C for small businesses, Schedule E for rental real estate properties, K-1 for estates, corporations and partnerships along with form 1040 for individuals.
By walking through each of the line items and providing details regarding what should be included on each line, you will gain a greater understanding of what to do on your income tax filing.
Income tax preparation form 1040 is the primary personal income tax reporting system that is used for declaring the summary total of all personal and small business income and deductible expenses for each year.
Starting in 2018 there have been many changes made to the format. The early release draft shows that it will now made up of the following primary features:
You can see an example draft form 1040 copy here
You should use Schedule C for small business when reporting income or loss from a business that you operated or a service you provided as a sole proprietor.
Activities that qualify as a business are those you are engaged in for income or profit on a regular and continual basis. The form is made up of the following items:
You can see a sample 2017 schedule C copy here
Schedule E is the tax form that is used for rental real estate properties to report income and loss from rentals, royalties, partnerships, S Corporations, estates and trusts.
The 2018 draft copy of the Schedule E shows the following attributes:
You can see a draft copy of the 2018 Schedule E Here
Schedule K-1, Form 1065 is a tax document that is issued for an investment in partnership interests. The purpose is to report your share of the partnership's income, deductions and credits.
It is issued around the same time as Form 1099 and serves a similar tax reporting purpose. The main items you will find on the Schedule K-1 are:
You can see a sample copy of the 2017 Schedule K-1 Here
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