K-1
Business & Finance abbreviation · Tax
| Stands for | Schedule K-1 |
|---|---|
| Categories | Business & Finance |
K-1 stands for Schedule K-1, a tax abbreviation.
Schedule showing each partner's, S corporation shareholder's or trust beneficiary's share of the entity's income, deductions and credits, which the recipient then reports on their own return. It accompanies Form 1065, 1120-S or 1041.
Example: Our accountant can't finish the return until the K-1 from the real estate fund arrives.
Usage notes
K-1s often arrive in March or later, which is why investors in partnerships and private funds frequently file extensions. Income reported on a K-1 is taxable even if no cash was distributed, sometimes called "phantom income." Publicly traded partnerships also issue K-1s, a paperwork burden that leads some investors to avoid them.
Related abbreviations
More tax abbreviations
- IHT – Inheritance tax
- IOSS – Import One-Stop Shop
- IP PIN – Identity Protection Personal Identification Number
- ITC – Input tax credit
- ITIN – Individual Taxpayer Identification Number
- ITR – Income tax return
- LIHTC – Low-Income Housing Tax Credit
- LLC – Lifetime Learning Credit
- LTCG – Long-term capital gain
- MACRS – Modified Accelerated Cost Recovery System
- MAGI – Modified adjusted gross income
- MFJ – Married filing jointly