I did a search through the forum for K-1 and K1 but found nothing.
My US parents set up a K-1 partnership for estate planning, which includes securities, and the family lake place.
On the K-1 I receive, there is Interest and Dividends, and occasionally capital gain/loss if we sell any securities in the year. In addition, there are some deductions in box 13. This is mainly for the property taxes on the cabin, and the accounting fees, which to me seem like legitimate expenses for this income. (BTW: I don't actually get any yearly distribution of interest/dividends from this partnership)
On the US side I just plug the numbers into the software and everything is ok.
On Canada side, I'm listing the interest as foreign interest and the dividends as foreign interest.
#1 Can I include the deductions on box 13 anywhere on Canada?
As a side note, the deductions don't seem to make any difference on my US tax liability. I'm curious as to why on the US, but you don't need to answer this side note wrt US tax liability.
#2 What do I do with the gains/losses on the Canada side? Are they only going to matter when the partnership eventually dissolves or do I need to report them each year? (Note: This year it's a big loss--what a surprise). I know capital losses can't be written off on Canada side, but just need to know what I should be doing with them.
Treatment of US K-1
Moderator: Mark T Serbinski CA CPA