There are partnership K-1s (Form 1165) which are different than S Corporation K-1s (Form 1120).
In both cases, typically, the most important numbers are on lines 1-3.
You can enter ordinary income and guaranteed payments as Business income, and specify the type of business as partnership or S Corp as appropriate.
You can enter rental income as a Real Estate property. Click “more info,” and specify at the top that the property is a rental income property.
Then scroll down and enter the rental income.
You can enter interest or dividend income on the appropriate income lines.
We might suggest ignoring any numbers that are really small. They will not affect any decisions the parties may make.
As for any other significant entries, you can use your judgment to figure out where things should go.
In any event, please be careful not to double enter any income. If income is reported on last year’s K-1, and you have income from the same activity in a cash flow report from the client’s accountant, please be sure to enter the income only once.
There may be situations in which the taxable income and cash distributions are not the same.
This will require special handling in Family Law Software, because the software generally assumes that the income and cash flow from a partnership or S Corporation are the same.
If you are entering data from a K-1, and it indicates that income for tax purposes is different than cash flow, enter the cash flow on the line for “cash flow” of the business, and override the taxable amount on the View/Edit Taxes report to enter the taxable income amount.
If you are looking at cash flow projections beyond the current year, you will want to override the taxable income on the View/Edit Taxes report in each future year.