There are different partner types allowed in the formation of a partnership, as allowed per IRS guidelines. A partner classification must be selected on each partner’s Schedule K-1 (Form 1065) Partner’s Share of Income, Deductions, Credits, etc. within TaxAct® to calculate the partner’s reportable items correctly. Below is an explanation of these partner classifications.
To select your partner classification within TaxAct and IRS Form 1065: