Mastering Partnership Tax Reconciliation
This tool transforms the complexities of Form 1065 into a clear, interactive experience. Learn to classify items correctly, visualize their impact on partner basis, and resolve common errors to maximize partner tax benefits.
1. Interactive Item Classifier
The core of an accurate partnership return is distinguishing between Ordinary Income items and Separately Stated Items. Click an item below to see where it belongs and, more importantly, *why* it's treated that way for the partner's benefit.
Select a transaction to classify:
Ordinary Business Income
Netted on Form 1065, page 1. The "bottom line" of the partnership's primary business operations.
Separately Stated Items
Passed through individually on Sch. K-1 to preserve their tax character for partner-level limits.
2. Partner Basis Simulator
A partner's basis is the ultimate gatekeeper for deducting losses and receiving tax-free distributions. Use the sliders to see how income, losses, and even nondeductible expenses impact a partner's year-end basis.
3. Diagnostic Alert Solver
Tax software alerts can be cryptic. This tool demystifies common Form 1065 diagnostic errors, explaining the root cause and providing a clear resolution path based on your source documents.
