Which one of the following is an example of a special allocation of partnership income?
A)The partnership's capital gains and losses are shown separately on Schedule K-1.
B)Distributions from the partnership to the partner are shown on Schedule K-1 line 20.
C)The partnership agreement provides that Marcus will report all charitable contributions rather than his 20% distributive share.
D)The Schedule K-1 reports each partner's share of the information they need in order to calculate the § 199 deduction.

Question

​Which one of the following is an example of a special allocation of partnership income?
A)​The partnership's capital gains and losses are shown separately on Schedule K-1.
B)​Distributions from the partnership to the partner are shown on Schedule K-1 line 20.
C)​The partnership agreement provides that Marcus will report all charitable contributions rather than his 20% distributive share.
D)​The Schedule K-1 reports each partner's share of the information they need in order to calculate the § 199 deduction.

Quizplus · Accepted Answer

A special allocation of partnership income is when the partnership agreement dictates that a particular partner receive a larger or smaller share of the partnership's profits or losses than their partnership percentage. In this case, Marcus is being allocated a special deduction for charitable contributions, which is different than his typical distributive share.

​Which One of the Following Is an Example of a Special

Which One of the Following Is an Example of a Special