Page 75 - Other Income for Individuals
P. 75
Partnership Income
Schedule K-1 (Form 1065) Qualified Joint Venture
Although a partnership generally pays no tax, it must If you and your spouse each materially participate as
file an information return on Form 1065, U.S. Return the only members of a jointly owned and operated
of Partnership Income, and send Schedule K-1 (Form business, and you file a joint return for the tax year,
1065) to each partner. you can make a joint election to be treated as a
In addition, the partnership will send each partner a qualified joint venture instead of a partnership.
copy of the Partner's Instructions for Schedule K-1 To make this election, you must divide all items of
(Form 1065) to help each partner report his or her income, gain, loss, deduction, and credit attributable
share of the partnership's income, deductions, to the business between you and your spouse in
credits, and tax preference items accordance with your respective interests in the
venture.
For further information on how to make the election
and which schedule(s) to file, see the instructions for
your individual tax return.
73
