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September 7, 2024
Question

If partnerships are pass-thru entities, then what are Form 1065 Lines 24 - 32 all about?

  • September 7, 2024
  • 1 reply
  • 0 views

My understanding is that each partner reports the partnership's financial information, per agreed allocation, onto each of their personal tax returns.

 

However, I noticed Lines 24-32 on Form 1065 that ultimately render an "amount owed" (Line 31) or "overpayment" (Line 32) which is at the partnership level.

 

An explanation would be appreciated!

    1 reply

    Employee
    September 7, 2024

    Specific types of partnerships and certain limited instances (e.g., imputed underpayment when an AAR is filed).

     

    Partnerships are still considered pass-through entities.