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April 2, 2025
Question

Schedule K-1

  • April 2, 2025
  • 1 reply
  • 0 views

First time receiving a schedule K-1, from a trust I inherited. 

Line 5 shows 10,280

Line 14  H (10,280)

 

1) is line 5 the taxable income

2) should line 14 be entered as a negative number since it is in parentheses? 

    1 reply

    April 2, 2025

    Yes, line 5 is taxable income.  It will be reported on Schedule E, line 33, column (f).  Yes, the amount on line 14 should be entered as a negative.  It is an adjustment to Investment income on Form 8960 - Net Investment Income Tax.  It should flow to line 7 of that form.  

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