Generates K-1 schedules for partner distributions with tax allocations
The K1 Generator skill produces Schedule K-1 tax documents for limited partners, handling complex tax allocations including carried interest treatment under IRC Section 1061. It ensures accurate, timely tax reporting for fund distributions.
Input: Fund activity, partner data
Process: Calculate allocations, generate forms
Output: K-1 documents by partner
Input: Fund income/loss, allocation provisions
Process: Apply allocation methodology
Output: Partner allocation schedules
Input: Distribution data
Process: Classify and allocate
Output: Distribution reporting schedules
Input: State allocation data
Process: Generate state-specific K-1s
Output: State K-1 documents
| Component | Description |
|---|---|
| Box 1-3 | Ordinary income/loss |
| Box 8-10 | Capital gains/losses |
| Box 11 | Section 1231 gains/losses |
| Box 13-20 | Other items |
| Schedules | Supporting detail |
| Consideration | Treatment |
|---|---|
| Section 1061 | 3-year hold for LTCG on carry |
| QSBS | Section 1202 exclusion tracking |
| State Taxes | State-specific allocations |
| Foreign Partners | Withholding requirements |