Partnership Income and Separately Stated Items
Ordinary Income and Special Tax Items
A partnership computes ordinary business income while separately reporting certain items that receive special tax treatment at the partner level. These separately stated items retain their character after passing through.
- Ordinary business income.
- Capital gains and losses.
- Interest income.
- Dividend income.
- Charitable contributions.
- Section 1231 gains and losses.
- Tax credits.
Note
Separately stated items preserve their tax character when reported by partners.
Summary
Partners must report separately stated items independently from ordinary business income.