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 § 199A (qualified business income) deduction.
E) None of the above items are special allocations.

Question

Quizplus · Accepted Answer

Special allocations are when the partnership agreement stipulates that certain partners receive a different share of the partnership's income, gain or loss, deductions, or credit. In this case, Marcus has a special allocation where he reports all charitable contributions instead of his normal 20% distributive share. This is an example of a special allocation. The other options listed are not special allocations, but rather common reporting items on a Schedule K-1.

Which One of the Following Is an Example of a Special