Form K-1 is a reporting form issued by partnerships, S-Corporations, estates and trusts.
Form K-1 reports an individual shareholder’s or beneficiary’s share of the entity’s income and deductions for the year.
Recipients of a K-1 will use page 2 of Schedule E for reporting some of what is on the K-1. In addition, other forms may be needed depending on what’s on the K-1. Interest income from a K-1 would be shown on the interest income line of your 1040, and you may need to show it on Schedule B, if you’re required to file a Schedule B.
A blog post in which I go line-by-line through a K-1 is a good idea, but that will have to be another post for another day.
The most-common boxes are box 1, which shows the partner’ or shareholders’ net income from the entity; box 2, which relates to any rental property the entity might hold; and boxes 5 and 6, which relate to interest and dividends passing through from the entity.