2005 1065 K-1 Line 20 code Q
From TaxAlmanac
1. Any information a publicly traded partnership needs to determine whether it meets the 90% qualifying income test of section 7704(c)(2). Note. A partner is required to notify the partnership of its status as a publicly traded partnership.
2. Any information or statements you need to comply with the registration and disclosure requirements under sections 6111 and 6662(d)(2)(B)(ii) and the list keeping requirements of Regulations section 301.6112-1. See Form 8264 and Notice 2004-80, 2004-50 I.R.B. 963, and Notice 2005-22, 2005-12 I.R.B. 756 for more information. 3. Any information you need to complete a disclosure statement for reportable transactions in which the partnership participates. If the partnership participates in a transaction that must be disclosed on Form 8886, Reportable Transaction Disclosure Statement, both you and the partnership may be required to file Form 8886 for the transaction. The determination of whether you are required to disclose a transaction of the partnership is based on the category(s) under which the transaction qualifies for disclosure and is determined by the partnership. You may have to pay a penalty if you are required to file Form 8886 and fail to do so. See the instructions for Form 8886 for details. 4. Interest and additional tax on compensation deferred under a section 409A nonqualified deferred compensation plan that does not meet the requirements of section 409A. See section 409A(a)(1)(B) to figure the interest and additional tax on this income. Report this interest and tax on line 63 of Form 1040. This income is included in the amount in box 4, Guaranteed Payments. 5. Inversion gain. The partnership will provide a statement showing the amounts of each type of income or gain that is included in inversion gain. The partnership has included inversion gain in income elsewhere on Schedule K-1. Inversion gain is also reported under code Q because your taxable income and alternative minimum taxable income cannot be less than the inversion gain. Also, your inversion gain (a) is not taken into account in figuring the amount of net operating loss (NOL) for the tax year or the amount of NOL that can be carried over to each tax year, (b) may limit the amount of your credits, and (c) is treated as income from sources within the U.S. for the foreign tax credit. See section 7874 for details. 6. Any other information you may need to file your return not shown elsewhere on Schedule K-1. The partnership should give you a description and the amount of your share for each of these items.
