Let’s go step by step to understand what this document is and what it shows.
This is a tax form called
Schedule K-1 (Form 1065) for the year
2014. It’s used by partnerships to report each partner’s share of income, deductions, credits, etc., so the partner can report it on their own tax return.
We’re looking at one specific partner’s K-1 —
Peter Canning.
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Step 1: Look at Part I – Information About the Partnership
The partnership is:
>
FAMILY FLIPSHOW, LLC
> 4106 GREENFIELD DR.
> SOUTH BEND, IN 46601
It filed its return in Cincinnati, OH.
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Step 2: Look at Part II – Information About the Partner
Partner:
>
PETER CANNING
> 1408 GRASSY HILL RD
> SOUTH BEND, IN 46601
He is marked as:
-
✔ General partner or LLC member-manager
-
✔ Domestic partner
- Type of entity:
Individual
His identifying number (like a Social Security Number) ends in
1567.
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Step 3: Look at Part III – Partner’s Share of Income, Deductions, Credits, etc.
This is where we see how much money Peter made or lost from the partnership.
Look at line
2:
>
Net rental real estate income (loss) =
–$86,035
That means Peter’s share of the partnership’s rental real estate activity was a
loss of $86,035.
All other lines (like ordinary business income, interest income, dividends, etc.) are blank — meaning he had no share in those items.
Also note: Line 19 “Distributions” is blank — so no cash or property was distributed to him during the year.
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Important Note:
There’s a big watermark that says
“Demo” across the form — which means this is likely a sample or demonstration form, not an actual filed tax document. But for homework purposes, we treat the numbers as real.
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What Does This Mean for Peter?
Even though the partnership may have made money overall, Peter’s share of the *rental real estate* part was a loss of $86,035. He will report this loss on his personal tax return (probably on Schedule E), and it might reduce his taxable income — depending on IRS rules about passive losses and whether he actively participated.
But since the question doesn’t ask for tax implications, just to read the form — we focus on what’s written.
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Final Check:
Is there any other income or deduction listed for Peter? No. Only line 2 has a value:
–86,035.
So the only financial item reported for Peter Canning on this K-1 is a
net rental real estate loss of $86,035.
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Final Answer:
Peter Canning’s share of net rental real estate income (loss) from FAMILY FLIPSHOW, LLC for 2014 is
–$86,035.
Parent Tip: Review the logic above to help your child master the concept of partnership basis worksheet.
