What Is a Schedule K Deduction?
Place each beneficiary’s share of an estate tax deduction on Schedule K-1, line 10. For example, say the Whipple Estate, which paid an estate tax at the top tax rate of 40 percent, included a retirement account on which no income taxes had ever been paid.
Who is likely to receive a K-1 tax form?
You: What gives? A K-1 is a tax form distributed by many partnerships, S-Corps, estates, and trusts. If you are a general or limited partner of a partnership, a shareholder in an S-Corp, or the beneficiary of an estate or trust, you’re likely to receive a K-1. You: But what is it? A K-1 is just like a W-2 or other tax form.
