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Line 13ZZ - Other Deductions - Amounts reported in Box 13, Code ZZ are deductions that the partnership can pass through to the partner (taxpayer) but do not fit any of the categories above. An amount entered on Line 13ZZ will not automatically flow to Form 1040.

A corporation offers the highest level of protection, as all owners have limited liability. In a partnership, at least one owner typically has unlimited liability. But you can get full protection if you set up a limited partnership. Your goals and plans for the business should also impact the entity you choose.

Calculation of the amount in box 14, code C, on the Schedule K-1. The amount on line 14c is non-farm income. It is needed for the partners to figure their net earnings from self-employment under the nonfarm optional method on their 1040 returns.

The Form IT-204-CP provided to you by your partnership lists your distributive share of any credits, credit components, credit factors, recapture of credits, and other information reported by the partnership during the tax year. You need this information when completing your corporate franchise tax return.

Partnerships are agreements between individuals with personal liability and pass-through taxation. S corporations are separate legal entities with limited liability, pass-through taxation, and restrictions on the number and type of shareholders.

Structure: A partnership involves two or more individuals, whereas a sole proprietor is a single person operating a business alone. A partnership may form an agreement that outlines operational terms and other business matters to regulate any future disagreements.

The excess business loss limitation was extended through 2028 by the Inflation Reduction Act of 2022. $250,000, adjusted annually for inflation in tax years after 2018. For 2025, the amount is $313,000 ($626,000 for joint returns). For 2024, the amount is $305,000 ($610,000 for joint returns).

The increased subtraction modification from 5 to 15 percent beginning in tax year 2022 should further incentivize taxpayers and practitioners to take advantage of this benefit available to them.

Partnerships should report each partner's share of NYS and NYC PTET credit, as applicable, on Lines 47a through 47f. The NYS PTET code should be reported using code 653 and the NYC PTET code should be reported using code B53. As used in this document, “Deloitte” means Deloitte Tax LLP, a subsidiary of Deloitte LLP.