Benefits

You can export from business returns to other return types, as applicable. This feature saves a substantial amount of data entry in a partner, shareholder, or beneficiary return.

Watch the video K1 Export for a demonstration.

Limitations

You can only export a K-1 between returns within the same year of Drake Tax.

An S corp can only have shareholders that are individuals or trusts, thus an 1120-S can only export a K-1 to a 1040 or 1041 return.

Basis information for individual partners or shareholders should be entered in the 1040 return in Drake Tax, using the Basis Worksheet links on the K1P or K1S screen. This information cannot be exported from the 1065 or 1120-S return to a 1040 return. Such an import would override limitations and carryovers calculated in the 1040 program. The basis information that is tracked in the 1065 or 1120-S return is inside basis only. Outside basis must be used in the 1040 return in order to apply basis limitations correctly and track carryovers. See Drake Tax - Basis, At-Risk, and Passive Activity Limits for more information about basis.

When you export K-1 information, amounts for the state do not export. State K-1 information must be manually entered on the respective federal or state K-1 screen.

Process

1. Make sure K1 data is entered in the 1065, 1120-S, or 1041 (source return). Also make sure you have created the partner, shareholder, or beneficiary file (target return) to which you intend to export.

2. View the 1065, 1120-S, or 1041, whichever applies.

3. In View/Print mode, click the K1 Export button on the toolbar.

4. If there are partners, shareholders, or beneficiaries whose return does not exist in the software, a list of SSNs that cannot be exported may appear. You can exit the export process and create any missing target returns, or click Next to proceed to a list of SSNs that can be exported.

5. To export the selected SSNs, click Export.

6. Look for a confirmation that the export was successful.

7. Review the K1P, K1S, or K1F screen in the target return to ensure that the export is complete and accurate.

8. Enter basis information, as needed.

Troubleshooting

Where the target of the export is an SSN that is the secondary taxpayer in a joint return and also the primary taxpayer in a single return, the export may go to the joint return.

• If the software confirms that the export was successful, but you don’t see it in a 1040 where you expect it, check for a secondary taxpayer in a joint return that duplicates the single taxpayer’s SSN.

• In this event, the spouse’s SSN in the joint return must be changed or removed for the K-1 to go to the individual return.

• You can use Report Manager to search for a spouse’s SSN (Spouse ID).

If the export is not successful, or the program closes without exporting the K-1:

• Ensure that Drake Tax is up to date.

• Go to Setup > Options > Calculation & View/Print, uncheck Auto-calculate tax return when exiting data entry > OK.

• Some users have reported display issues when a K1 is exported to a 1040 where there are two names entered in the Last Name field on the K1 screen in the business return. Ensure that there is a hyphen between the two last names (or temporarily remove the space). Be sure to calculate before attempting the export again.

• If the problem persists, contact Drake Software Support at (828) 524-8020 for assistance and a possible repair installation of your software.

If the K1 export fails or is missing data:

• Delete the exported K1 screen in the target return.

  • Open the K1P, K1S, or K1F screen and press Ctrl + D.

• Re-calculate the source return (1065, 1120-S, 1041).

• Repeat steps 1-8 above.