K-1s: Preparation, Analysis & Interpretation


Preparing and interpreting Form K-1 can be daunting even for experienced tax accountants. The key is knowing what the form does—and does not—convey. This seminar demystifies the complexities of K-1s by providing a clear explanation of:

  • Different types of K-1s (S Corps, Partnerships, LLCs, Estates and Trusts)
  • The concept of "at-risk basis": how the K-1 assists you in calculating it and what information is NOT part of the calculation
  • How recent tax legislation has changed the disclosure requirements on Schedule K-1
  • Complicated K-1s from hedge funds
  • Common disclosures and what they mean

To interpret and prepare Federal Tax Form K-1 in light of increasingly complex reporting requirements. You'll assess the effects of IRS rule changes and work through examples to clarify the concepts. You'll gain practical knowledge of the rules for disclosure and presentation and a clear understanding of "basis." And you'll learn the questions to ask a K-1 preparer to get the information you need.

  • Concept of a flow-through entity
  • An overview of the differences among: S corporations, partnerships, LLCs, and estates and trusts
  • The Section 199A qualified business income deduction
  • Explanation of "basis" and "at-risk basis" for various flow-through entities
  • Review of disclosure requirements and information you might need that's NOT there
    – Easily missed items
    – Questions you need to ask
  • New Schedule K-3 requirement for international transactions
  • Critical issues in preparing and interpreting a hedge fund's K-1 for investors
  • Interpreting K-1 information regarding PFICs and the QEF opportunity
  • K-1 and investor issues
    – Losses and distribution of earnings
    – Complications resulting from faulty K-1 interpretations
    – How to avoid interpretation mistakes
  • Federal and state differences
  • Hands-on examples of K-1s for S corporations, partnerships, LLCs, estates and trusts

Basic knowledge of federal taxes.


No advance preparation required.

Level of Knowledge: 


CPE Credit: 
NASBA Field of Study: