Monthly Archives: April 2011

Interest from a K-1 on Schedule B: Count it or not?

Here is how you end up with Interest from a Schedule K-1 on 1040 Schedule B:

  • Schedule B includes all taxable income.
  • Interest income received by an S Corporation or a 1065-filing entity like an LLC or partnership is passed through and taxed to the owner of the company
  • Thus interest not received by an individual will be listed on Schedule B

Read more