Pa Schedule Rk 1 Form – Fill Out and Use This PDF

SECTION I

PA SCHEDULE RK-1

2007210053

Resident Schedule of Shareholder/

Partner/Beneficiary Pass Through

Income, Loss and Credits

PA-20S/PA-65 RK-1 (DR) MOD 05-20 (FI)

2020

PA Department of Revenue

Last Name

Suffix First Name

M I

SSN

Spouse’s SSN

Phone Number

If jointly held

Name of Owner Receiving RK-1 (if other than an individual)

FEIN

First Line of Address

Amended Schedule

Final

Owner:

Shareholder’s stock ownership: ________%

Individual

Second Line of Address

Beneficiary’s year-end distribution: ________%

PA S Corp.

Partner’s percentage of:

All Other Corp.

City or Post Office

State

ZIP Code

Profit sharing: ________%

Estate/Trust

Loss sharing: ________%

Partnership

Ownership of capital: ________%

LLC

Name of Entity Issuing RK-1

City or Post Office

State

ZIP Code

Entity: (Fill in one oval only)

Estate/Trust

Partnership

FEIN

Revenue ID

PA S Corp

LLC

Fiscal Year

Short Year

Begin

End

NOTE: Amounts from this schedule must be reported on the appropriate PA Tax Return.

					1		. . . . . . . .PA-Taxable Business Income (Loss) from Operations	. . . If a loss, fill in the oval.	1
			2				Interest Income	. . . . . . . . . . . . . . . . . . . . . . . . . . . .	2
	SECTION		3				Dividend Income	. . . . . . . . . . . . . . . . . . . . . . . . . . . .	3
		II	4				Net Gain (Loss) from the Sale, Exchange or Disposition of Property . . .	. . . If a loss, fill in the oval.	4
			5				Net Income (Loss) from Rents, Royalties, Patents and Copyrights . . .	. . . If a loss, fill in the oval.	5
			6				Income of/from Estates or Trusts	. . . . . . . . . . . . . . . . . . . . . . . . . . . .	6
	SECTION				7		Gambling and Lottery Winnings (Loss)	If a loss, fill in the oval.	7
		III					Resident Credit. Submit statement		8
					8			. . . . . . . . . . . . . . . . . . . . . . . . . . . .
			9				Total Other Credits. Submit statement	. . . . . . . . . . . . . . . . . . . . . . . . . . . .	9
			10				Distributions of Cash, Marketable Securities and Property - not including guaranteed payments . . . .		10
	SECTION	IV	11				Guaranteed Payments for Capital or Other Services	. . . . . . . . . . . . . . . . . . . . . . . . . . . .	11
			12				All Other Guaranteed Payments for Services Rendered	. . . . . . . . . . . . . . . . . . . . . . . . . . . .	12
			13				Guaranteed Payments to the Retired Partner	. . . . . . . . . . . . . . . . . . . . . . . . . . . .	13
	SECTION							If liquidating, fill in the oval.	14
		V	14				Distributions from PA Accumulated Adjustments Account . . .
			15				Distributions of Cash, Marketable Securities and Property	. . . . . . . . . . . . . . . . . . . . . . . . . .	15
	SECTION							If a loss, fill in the oval.	16
		VI	16				Nontaxable income (loss) or nondeductible expenses required to .
							calculate owner’s basis. Submit statement.
	SECTION					17	Owner’s Share of IRC Section 179 allowed according to PA rules		17
		VII				18 Owner’s Share of Straight-Line Depreciation		. . . . . . . . . . . . . . . . . . . . . . . . . . . .	18
			19				Partner’s Share of Nonrecourse Liabilities at year-end	. . . . . . . . . . . . . . . . . . . . . . . . . . . .	19
						20 Partner’s Share of Recourse Liabilities at year-end			20
								. . . . . . . . . . . . . . . . . . . . . . . . . . . .

Exempt

Partner:

General Partner or LLC Member - Manager

Limited Partner or Other LLC Member

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PA-20S/PA-65 RK-1 IN (DR) MOD 05-20

Resident Schedule of Shareholder/Partner/Beneficiary Pass Through Income, Loss and Credits

GENERAL INFORMATION

PURPOSE OF SCHEDULE

Partnerships and S corporations use PA Schedule RK-1 to report income and losses by class of income to each of its resident owners. A PA Schedule RK-1 is prepared for each individual partner or shareholder showing the share of income (losses) by class and other items required to be reported.

Pennsylvania partners/members/shareholders (owners) who are individuals are subject to Pennsylvania personal income tax on their share of the entity’s income, whether or not the income is actually distributed.

Owners who are individuals who reside in Pennsylvania are taxed on their share of the entity’s income, regardless of the income source.

The PA-20S/PA-65 Schedule RK-1 provides each partner/ member/shareholder (owner) and entity owner their share of income, losses and credits from the partnership, PA S cor- poration, estate, trust and/or entity formed as a limited lia- bility company classified as a partnership or S corporation for federal income tax purposes.

tax purposes (entity) that fails to file a PA-20S/PA-65, S Cor- poration/Partnership Information Return may be subject to

a$250 non-filer penalty. The $250 penalty also applies to each missing Schedule RK-1 or NRK-1.

NOTE: An entity that is the owner of another entity receives both the PA-20S/PA-65 Schedule RK-1 and

NRK-1.

PA SCHEDULE RK-1 FOR

C CORPORATION PARTNERS

PAPER RETURNS AND ELECTRONIC FILED RETURNS

The PA-20S/PA-65 Schedule RK-1 submitted with the PA- 20S/PA-65 Information Return does not need to be issued to C corporation taxpayers unless a credit from the PA-20S/ PA-65 Schedule OC has been allocated. Partnerships, PA S corporations, estates, trusts and/or limited liability compa- nies must submit PA-20S/PA-65 Schedule RK-1 with the applicable Pennsylvania tax returns.

If a C corporation taxpayer receives a PA-20S/PA-65 Sched- ule RK-1, the amount from Line 9, Total Other Credits, must be reported on the appropriate Pennsylvania tax return.

WHO SHOULD RECEIVE

PA SCHEDULE RK-1

APA-20S/PA-65 Schedule RK-1 must be completed for every Pennsylvania resident owner in a partnership, S cor- poration, estate, trust and/or entity formed as a limited lia- bility company classified as a partnership or S corporation for federal income tax purposes.

Acopy of the PA-20S/PA-65 Schedules RK-1 for each partner/member/shareholder (owner) must accompany the entity’s PA-20S/PA-65 Information Return. Owners must receive a copy or copies to prepare Pennsylvania tax or information returns. The PA S corporation or partnership must also retain a copy of all PA-20S/PA-65 Schedules RK-1 as part of the entity’s records.

In addition, a PA-20S/PA-65 Schedule RK-1 must be com- pleted for all resident owners that are estates, trusts, other PA S corporations, other partnerships, and other pass through entities. The Pennsylvania-taxable income passes through to the final taxpayer. Therefore, the immediate part- ners and shareholders must know the total Pennsylvania- taxable income in the event the final owner is a Pennsylvania resident.

In the event that the final owner is a nonresident of Penn- sylvania, the owner must know Pennsylvania-source taxable income. A partnership, S corporation or limited liability com- pany classified as a partnership or S corporation for federal

PART-YEAR RESIDENT OWNERS

The requirements are different for PA S corporations and partnerships to issue PA-20S/PA-65 Schedules RK-1 and/or NRK-1 to its owners as described below.

PA S CORPORATIONS ONLY

RESIDENCY PERIOD

A PA S corporation must submit a separate PA-20S/PA-65 Schedule RK-1 for that portion of the tax year during which a part-year resident shareholder was a resident of Pennsyl- vania. Part-year shareholders have business income and losses prorated based upon the number of days in the tax year these individuals are located within and outside the state. Each shareholder’s pro rata distributive share of total income, losses and credits reported on the PA-20S/PA-65 Information Return determines the income amounts for the lines that are included on the PA-20S/PA-65 Schedule RK-1. Income is allocated based on days residing or not residing in Pennsylvania. Pennsylvania considers any day or partial day an owner has a residence or domicile within the com- monwealth to be a Pennsylvania residency day. The owner will receive a PA-20S/PA-65 Schedule RK-1 and NRK-1 reflecting the proportionate share of income earned while a resident and a nonresident.

In order to calculate the PA Schedule RK-1 income and losses by class for the residency period, first determine the proportional number of days a shareholder resided in the state. Using the number of days a shareholder was located in

the state as the numerator, divide this figure by the total num- ber of days in the tax year representing the denominator. The resulting ratio should be multiplied by the PA and non- PA income and losses by class shown on page one of the PA-20S/PA-65 Information Return. This figure is then multi- plied by the shareholder’s stock ownership percentage to determine the PA Schedule RK-1 income and losses by class.

IMPORTANT: When submitting an amended RK-1, the amended PA-20S/PA-65 Information Return must

accompany it.

COMPLETING PA SCHEDULE RK-1

FOREIGN ADDRESS STANDARDS

If the entity is located outside the U.S., it is important to write

PARTNERSHIPS ONLY

RESIDENCY PERIOD

A resident partner reports income based upon his/her resi- dency status at year-end and does not prorate the income. The partnership must submit a separate PA-20S/PA-65 Schedule RK-1 for each individual partner if during the part- nership’s taxable year the partner was:

●A Pennsylvania resident at the close of the taxable year;

●Deceased and a Pennsylvania resident at the time of his/her death during the taxable year; and/or

●A Pennsylvania resident at the close of business on the day during the taxable year that he/she sold, exchanged, disposed of, liquidated, or redeemed his/her entire interest in the partnership.

NOTE: Income is considered earned on the final day of the tax year. If he/she is a resident on the last day of the year, he/she will receive a PA-20S/PA-65 Schedule RK-1. He/she can claim out-of-state credit on income taxed

elsewhere.

ENTITIES WITH A SIGNIFICANT

NUMBER OF OWNERS

The department will not accept PA Schedules RK-1 and NRK-1 in CD rom format. Please reference Informational Notice PIT 2013-02. Schedules RK-1 and NRK-1 submitted in this format will not be processed and the entity may be subject to the $250 non-filer penalty that applies for each missing PA Schedule RK-1 and NRK-1.

As an alternative Pennsylvania offers an electronic filing option that does not have a filing limit on the number of PA Schedules RK-1/NRK-1.

To obtain the electronic filing and payment formats or to obtain additional information on electronic filing and payment options, visit Revenue’s e-Services Center on the depart- ment’s website.

the foreign address on the PA-20S/PA-65 Schedule RK-1 according to U.S. Postal Service standards.

Failure to use these standards may delay processing or cor- respondence necessary to complete the processing of the

return.

To comply with foreign address standards, use the following

rules when completing the address portion of the PA-20S/ PA-65 Schedule RK-1.

●Eliminate apostrophes, commas, periods and hyphens. Write the address in all uppercase letters. An address should have no more than four lines and must be written in ink or typewritten. Pencil is unacceptable.

●Write the name of the entity in the space provided. Mail may not be addressed to a person in one country “in care of” a person in another country. The address of items sent to general delivery must indicate the addressee’s full legal name.

●Write the address in the space provided, including street and building name and number, apartment or suite num- bers, city name and city or provincial codes. All lines of the delivery address should appear in all capital letters. The house number and street address or box number must appear when mail is addressed to towns or cities.

●Write only the name of the country in the space provided for the city or post office.

●Do not include any entries in the ZIP code space on the PA-20S/PA-65 Schedule RK-1.

Providing the address in this format will better ensure that

the department is able to contact the entity if additional information is required.

Below are examples of properly completed foreign addresses.

CANADA (ONLY) ADDRESS EXAMPLE

The following address format may be used when the postal address delivery zone number is included in the address:

Name: NORTH BY NORTHWEST CO

Address 1: 1010 CLEAR ST

Address 2: OTTAWA ONT K1A OB1

City: CANADA

State: OC

ZIP Code: Leave Blank

NOTE: For a Canadian address, two spaces must exist between the province abbreviation and the postal code.

Please review previous example where “ONT” (province abbreviation) and “K1A OB1” (postal code) are shown with the proper address format, separated by two spaces.

If the entity’s address does not fit in the available spaces on the PA-20S/PA-65 Schedule RK-1 using this format, please submit a separate statement that includes the entity’s name, entity’s federal employer identification number, tax year and complete address.

line of address and the apartment number, suite or RR num- ber on the first line of address.

SECOND LINE OF ADDRESS

Enter the post office box, if appropriate, of the owner receiv- ing the PA-20S/PA-65 Schedule RK-1. If there is no post office box, leave the second line of the address blank.

For a foreign address enter the city or municipal designation. See Foreign Address Examples.

For a Canadian address, enter the city and postal delivery zone number. See Canada Address Example.

IMPORTANT: If the address has only a post office box, enter on the first line of address.

CITY, STATE AND ZIP CODE

Enter the appropriate information in each box. Eliminate all punctuation such as apostrophes, commas, periods and hyphens.

NAME OF ENTITY ISSUING RK-1

Enter the name of the entity issuing the PA-20S/PA-65 Schedule RK-1.

SECTION I

GENERAL INFORMATION

SSN

Enter the nine-digit Social Security number (SSN) of the individual receiving the PA-20S/PA-65 Schedule RK-1.

LAST NAME, SUFFIX, FIRST NAME, MIDDLE INITIAL

Enter the last name; suffix such as Jr., Sr., etc.; first name and middle initial of the individual receiving the PA-20S/PA-65 Schedule RK-1.

SPOUSE’S SSN

Enter the nine-digit SSN of the spouse (if jointly held) receiv- ing the PA-20S/PA-65 Schedule RK-1.

FEIN

Enter the nine-digit federal employer identification number (FEIN) of the owner (if other than an individual) receiving the PA-20S/PA-65 Schedule RK-1.

NAME OF OWNER RECEIVING RK-1 (IF OTHER THAN AN INDIVIDUAL)

CITY, STATE AND ZIP CODE

Enter the appropriate information of the entity issuing the PA Schedule RK-1 in each box. Eliminate all punctuation such as apostrophes, commas, periods and hyphens.

FEIN

Enter the nine-digit FEIN of the entity issuing the PA-20S/ PA-65 Schedule RK-1.

REVENUE ID

Enter the 10-digit Revenue ID, if applicable.

AMENDED SCHEDULE

Fill in the oval if the PA-20S/PA-65 Schedule RK-1 is an amended schedule.

FINAL

Fill in the oval if the PA-20S/PA-65 Schedule RK-1 is a final schedule.

SHAREHOLDER’S STOCK OWNERSHIP

Enter the shareholder’s percentage of stock ownership in the PA S corporation.

●Profit sharing

●Loss sharing

●Ownership of capital

Valid values are: “00000” to “10000”, where 10000 = 100%

Decimal point is implied after 3rd character from the left

e.g. to indicate 33.33%, the value should be “03333”

e.g. to indicate 25%, the values should be “02500”

OWNER

Fill in the oval that designates what type of owner received the PA-20S/PA-65 Schedule RK-1. Fill in one oval only.

PARTNER

Fill in the oval that designates what type of partner received the PA-20S/PA-65 Schedule RK-1. Fill in one oval only.

ENTITY

Fill in the oval that designates what type of entity issued the PA-20S/PA-65 Schedule RK-1. Fill in one oval only.

FISCAL YEAR

If the PA S corporation, partnership or limited liability company filing as a partnership or PA S corporation for fed- eral income tax purposes does not file on a calendar-year basis, fill in fiscal-year oval. Enter the month, day and year (MMDDYY) when the fiscal year begins and ends.

SHORT YEAR

A short year is an accounting period shorter than one year and not a 52/53 week taxable year.

A short-year return is required for the following reasons:

●Changes in the annual accounting period. For example, the entity changes from a fiscal-year filer to a calendar- year filer; or

●An entity is in existence during only part of the tax year. For example, if the year is the initial year.

See the PA-20S/PA-65 Information Return instructions on how to file a short-year return.

LINES 2 THROUGH 7

Enter the owner’s pro rata distributive share of the sepa- rately stated items of other Pennsylvania-taxable income (loss) from the PA-20S/PA-65 Information Return. Pennsyl- vania-taxable income includes total of Pennsylvania-source and outside Pennsylvania income (loss). If reporting a loss on Lines 4, 5 and/or 7, fill in the oval.

SECTION III

OWNER’S SHARE OF PENNSYLVANIA CREDITS

Enter the owner’s pro rata distributive share of the separately stated credits that the PA S corporation or partnership passes through to the owners from the PA-20S/PA-65 Information Return.

LINE 8

RESIDENT CREDIT - SUBMIT STATEMENT

Do not use Line 8 to report a resident credit for an Entity Level Tax. Certain states have imposed an entity level tax (ELT) on pass-through entities resulting from the Federal Tax Cut and Jobs Act (P.L. No: 115-97). Please see Answer ID 3618 (https://revenue-pa.custhelp.com/app/answers/detail/ a_id/3618/kw/3618) on the Department’s website for addi- tional information and clarification.

Enter the Pennsylvania resident owner’s pro rata distributive share of credit calculated from composite returns filed by the PA S corporation or partnership on behalf of resident owners. Submit a statement with the PA-20S/PA-65 Schedule RK-1 to notify the owner of the breakdown of states, break- down by Pennsylvania income class, taxes paid to those states and the resident credit claimed, which is the lessor of the actual tax paid or 3.07 percent of the total income taxed in the other state.

The statement must include the entity’s name, entity’s federal employer identification number, tax year, owner name(s), and owner tax identification number(s).

NOTE: If a composite return is filed in other states, the entity must submit a copy of the out-of-state

returns for all resident credits claimed.

SECTION IV

the partnership must provide a statement to the partners showing the amounts for each line.

SECTION V

DISTRIBUTIONS FROM PA S CORPORATIONS

LINE 14

DISTRIBUTIONS FROM PA ACCUMULATED ADJUSTMENTS ACCOUNT

Enter the shareholder’s share of such distributions. If a liq- uidating distribution, fill in the oval. If the amount is in excess of basis, it must be reported on the shareholder’s return as taxable gain on PA-20S/PA-65 Schedule D-I, Line 15.

LINE 15

DISTRIBUTIONS OF CASH, MARKETABLE SECURITIES AND PROPERTY

Enter the shareholder’s share of such distributions. This line will include the total of cash and the fair market value of all marketable securities and property distributed to the shareholder.

SECTION VI

NONTAXABLE INCOME (LOSS) IN OWNER’S BASIS

LINE 16

NONTAXABLE INCOME (LOSS) OR NONDEDUCTIBLE EXPENSES REQUIRED TO CALCULATE OWNER’S BASIS

The difference between federal and Pennsylvania deprecia- tion should not be included on this line. Line 16 is based on permanent nontaxable income or nondeductible expenses in calculating Pennsylvania-taxable income. This amount is generally not the same amount reported on the PA-20S/ PA-65 Information Return, Section IV, Line 12 because Line 12 should include non-permanent items.

Submit a statement that includes the entity’s name, entity’s federal employer identification number and tax year. Provide a breakdown of all nontaxable income earned and all nond- eductible expenses not taken.

This amount should only include permanent differences needed to calculate the owner’s basis in the entity. If report- ing a loss, fill in the oval.

The entity provides the owners with this information so the owners can calculate their basis. Examples of nontaxable income are tax-exempt interest, gifts, inheritance, loan pro- ceeds, insurance proceeds and federal tax refunds. Exam- ples of non-deductible expenses are partner's retirement contributions, partner's life and health insurance premiums.

These items may be listed on federal Form 1120S Schedule K as “Items Affecting Shareholder Basis” and on federal Form 1065 Schedule K as “Other Information.”

SECTION VII

SUPPLEMENTAL INFORMATION

The owners will need certain information to determine their outside Pennsylvania basis in the entity, taking into consider- ation distributions that may exceed their ownership interests.

LINE 17

OWNER’S SHARE OF IRC §179 ALLOWED ACCORDING TO PENNSYLVANIA RULES

Enter the owner’s share of IRC §179 depreciation expense. Each entity and individual taxpayer is limited to $25,000 of IRC §179 depreciation expense. Do not deduct this amount from any income class. This amount is used to verify the owner has not exceeded the Pennsylvania limit.

LINE 18

OWNER’S SHARE OF STRAIGHT-LINE DEPRECIATION

Enter the owner’s share of the entity’s total expense.

Assets for which accelerated depreciation has been calcu- lated must be recalculated using straight-line depreciation in order to calculate outside Pennsylvania basis in the entity. The life of the asset must be the same life that was used to calculate depreciation expense deducted in determining Business Income (Loss) from Operations and/or Rental Income (Loss).

LINE 19

PARTNER’S SHARE OF NONRECOURSE LIABILITIES AT YEAR-END

Enter the partner’s share of nonrecourse liabilities at year-end.

A nonrecourse liability is a secured liability, identified by the partnership, for which the partners are not personally liable.

Nonrecourse liabilities apportion such debts to each part- ner’s outside basis and validate deductions based on such liabilities.

LINE 20

PARTNER’S SHARE OF RECOURSE LIABILITIES AT YEAR-END

Enter the partner’s share of recourse liabilities at year-end. A recourse liability is one for which a partner is personally liable.