Received Form 1065 - business as a trader - how to apply to personal return

[brandonm78]

I received a form 1065 and I just can't for the life of me figure out how to apply this to my own personal tax return. I have always done my own taxes and fairly complicated ones, but this is something very much new.

The return states that the partnership has taken the position that it is engaged in the active conduct of a business as a trader in securities. And the trading activity is not passive income and is not portfolio income for the purposes of passive activity loss rules.

The difficulty I am having with is box # 1 and box # 11F.

Box # 1, ordinary business income states "the amount shown in box 1 is section 475 (F) MTM Income / Loss. I have a gain, do I need to do anything special with this or should it just translate over to schedule E, line 28, column (h).

Box # 11 F appears to be even more confusing than box 1. It consists of:

Trade or Business Expensive - I have a loss.

Management Fees - I have a loss

From Pass-Through Entities - I have a gain (A)

Then there is a second form which defines the Pass Through Entity (A) total above.

Section 988 Gain / Loss - I have a loss

Swap Income - I have a gain

Trade or business Expense - I have a loss

My question is where do these items translate down to my individual tax return. This is very much confusing.

Thank you,

Brandon

[Pacun]

We have to refer you to a Tax Preparer, or CPA. Take the documents to him and he will have a better idea. There is always the time when you have to stop doing your own taxes and it seems your time has arrived.

[grandmabee]

You should have a form K-1 which tells you how it effects your personal return. The 1065 form is the partnership tax return and it was already filed.