What types of income show up on Other portfolio income line 11 K-1 besides REMIC?

Line 11 of Schedule K-1 (Form 1065) for "Other portfolio income" can include several types of income beyond just REMIC (Real Estate Mortgage Investment Conduit) income. You might find income from: - Interest income from investments that wasn't reported elsewhere - Dividends from foreign corporations not reported on line 6 - Annuity income not connected to the partnership's trade or business - Income from notional principal contracts (like swaps and similar financial instruments) - Net income from abandoned business property - Certain income from Personal Holding Companies - Income from marketable securities and other financial instruments that generate portfolio-type income The partnership should generally provide an attached statement that breaks down what specific income types are included in that line 11 amount, which would be very helpful for understanding exactly what you're dealing with.

After struggling with some complicated K-1 forms last tax season, I found taxr.ai (https://taxr.ai) incredibly helpful for figuring out exactly what was on each line of my partnership K-1s. I had multiple partnerships with income on line 11 and wasn't sure how to properly report everything. The tool analyzed my K-1s and clearly explained what each type of income was and how it should be treated for tax purposes. Much easier than trying to decipher what everything meant on my own!

Just wanted to follow up - I tried taxr.ai with my complicated K-1s and it was really helpful! One of my K-1s had line 11 income from some foreign interest income and another had income from some kind of swap contract. The tool explained that these were both portfolio income items but had different reporting requirements. Saved me from making a pretty big mistake on how I was classifying the swap income. My previous accountant had been treating it as ordinary income but apparently it needed special reporting. Worth checking out if you're dealing with these complex K-1 items!

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I have to admit I was completely wrong. After my frustrated comment, I decided to try Claimyr anyway since I was desperate to get my K-1 question answered before filing. The system actually worked exactly as described. I was connected to an IRS tax specialist who explained exactly how to report the foreign interest income on line 11 of my K-1. The wait was still long (about 2 hours total) but I didn't have to do anything except answer my phone when an agent was ready. Saved me from having to sit by my phone on hold all day. I'm honestly shocked it worked so well.

One thing to check - line 11 can sometimes include income that needs to be reported on different tax schedules. My K-1's line 11 last year had income from securities lending that had to be reported on Schedule B rather than Schedule E where most K-1 stuff goes. The partnership should provide statements explaining exactly where each type needs to be reported.

Be careful with income on line 11 - sometimes it can have foreign tax withholding associated with it that you can claim as a credit. My partnership K-1 had foreign interest income on line 11 last year and I almost missed claiming the foreign tax credit. Check if there's anything on line 16 about foreign taxes paid!

Great question! In addition to the excellent answers already provided, I'd like to mention a few more types of income that can show up on line 11: - Income from Real Estate Investment Trust (REIT) distributions that don't qualify as dividends - Gain/loss from mark-to-market elections on securities - Income from commodity futures contracts held as investments - Certain foreign currency gains/losses from investment activities - Income from credit default swaps and other derivative instruments One important tip: if you have significant amounts on line 11, especially from complex financial instruments, consider keeping detailed records of the source documents. The IRS may ask for additional information during an audit since this line often contains less common types of investment income. Also, don't forget to check if any of this income has associated expenses that might be deductible - sometimes partnerships will report the gross income on line 11 and related investment expenses elsewhere on the K-1.