2005 1065 K-1 Line 15 code C and D
From TaxAlmanac
The partnership will report your share of the qualified rehabilitation expenditures related to rental real estate activities using code C. Your share of qualified rehabilitation expenditures from property not related to rental real estate activities will be reported using code D. On an attached statement, the partnership will indicate the line number on Form 3468, Investment Credit, to report these expenditures (line 1b for pre-1936 buildings or line 1c for certified historic structures). If the pre-1936 building or certified historical structure is located in the gulf opportunity zone for Hurricane Katrina, the partnership will identify the amount of expenditures that qualify for the increased rehabilitation credit. See Form 3468 for details. If the partnership is reporting expenditures from more than one activity, the attached statement will separately identify the amount of expenditures from each activity for lines 1b and 1c.
Combine the code C and code D expenditures on lines 1b and 1c of Form 3468. The expenditures related to rental real estate activities (code C) are reported on Schedule K-1 separately from other qualified rehabilitation expenditures (code D) because they are subject to different passive activity limitation rules. See the instructions for Form 8582-CR, Passive Activity Credit Limitations, for details.
