Schedule K-1 (Forms 1065 and 1120-S) - Section 179 Depreciation
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The IRS has requested that some information (like the Section 179 expense) be separated from the other income and expenses in order for the IRS to easily match Schedule K-1 information. They have requested us to enter Depreciation for Section 179 expenses on Part II of the Schedule E (Form 1040) Supplemental Income and Loss on the line directly below the Partnership or S-Corporation information and then enter the EIN to match the depreciation to the applicable K-1.

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