club_cafe: Total on 510B doesn't match total on 1065

iras1 on

In a message dated 03/10/08 12:01:02 A.M. Eastern Daylight Time, etana_finkler@bivio.com writes:

Ira and all,
The total on the 510B does not match the total on page 4 of
the 1065:

Correct. It shouldn't match if there were any expenses on the 1065 or if certain income items receive different tax treatment on the two returns (US Govt interest, out-of-state municipal bond interest).

We added all the income on the K1, and put that in each
member's Distributive share line.

Correct.

We looked at how it had been done last year: Then we added
the total for all 10 members, and put that on the front of
the MD form on the line:

Total distributive or pro rata share of income per federal
return (Form 1065 or 1120S) -- Unistate entities or
multistate entities with no nonresident members also enter
this amount on line 4 . . . . . . . . . 5032.78

However, this total does not match the 1065 total on page 4:
Analysis of Net Income

Correct. The 1065 reports net income. The MD 510 reports income only. It does not include expenses.

1. Net income (loss) which bivio totalled as 4714.16

Is this correct? The 1065 total should be less than the 510B
Total distributive or pro rata share of income per federal
return" because it is NET after deductions/expenses/etc.

Correct. In the general case, one can only say that the MD 510 total income may be different from the federal income. BTW, you keep referring to a 510B form. I'm not aware of any such form. I assume you man the MD 510.

Ira Smilovitz

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