Schedule AR K-1FE — Fiduciary K-1 Owner Share Instructions

# preamble

INSTR

# What's New for 2025

The column order has been switched to more align with various income tax forms. 7KH¿UVWFROXPQ D QRZUHSUHVHQWVWKHWRWDODPRXQWV reported to Arkansas resident members while the second column b represents the apportionedallocated amounts sourced to $UNDQVDV For more information, see Part III. Schedule AR K-1FE uses two columns to distinguish between resident and nonresident reporting requirements. • &ROXPQ D ±5HVLGHQW7RWDO For Arkansas residents. Enter the full distributive share of each item, including amounts from other states. • &ROXPQ E ±$UNDQVDV6RXUFH For non-residents and part-year residents. Enter only the portion allocated or apportioned to Arkansas. Arkansas K-1FE Inst. Page 1 (R 10/1/2025)

# INSTR GENERAL INSTRUCTIONS

Box 10b. Other income (loss) The instructions for each line pertain to the first FOR AR K-1FE column with the understanding that Arkansas Enter the beneficiary s share of other income residents will complete both columns and report (loss) allocated and apportioned to Arkansas. If the beneficiary had other income loss not included income from all sources on an Arkansas basis in the Use this form to report the beneficiary s share of second column. in boxes 1 through 9, enter the total and attach a income, deductions, credits, etc. from an estate or statement to specify other income (loss). trust. Attach this form to your AR1002F or AR1002NR. Box 1b. Interest income Generally, you must report items shown on your Box 11b. Depreciation

# Arkansas Schedule K-1FE the same way that the

Enter the beneficiary s share of interest income estate or trust treated the items on its return. allocated and apportioned to Arkansas. Enter the beneficiary s share of depreciation allocated and apportioned to Arkansas not reported elsewhere. Attach a statement. Box 2b. Ordinary dividends

# PART I

Enter the beneficiary s share of ordinary dividends Box 12b. Other deductions allocated and apportioned to Arkansas. Complete Arkansas Schedule AR K-1FE for each Enter the beneficiary s share of other deductions estate or trust. allocated and apportioned to Arkansas. Attach a Box 3b. Business income statement specifying each deduction. Enter the beneficiary s share of business income

# ITEM A

(loss) allocated and apportioned to Arkansas. Enter the identification number of the estate or trust Business income is your share of the income (loss) Box 13b. Other information Enter the beneficiary s share of other information from the trade or business activites of the estate ITEM B or trust. allocated and apportioned to Arkansas. Enter the name and address of the estate or trust. Box 4b. Rents, royalties, partnerships, S Box 14b. Credits Corps, estates and trusts, etc. Enter the beneficiary s share of credits allocated and

# PART II

Enter the beneficiary s share of rent royalties apportioned to Arkansas. partnerships, S Corps, estates and trusts allocated Complete Arkansas Schedule AR K-1FE for each and apportioned to Arkansas. If the estate or trust Box 15b. Tax-exempt income and EHQH¿FLDU\ had more than one rental real estate activity, or nondeductible expenses income from multiple pass-through entities, attach

# ITEM C

Enter the beneficiary s share of taxexempt income a statement identifying the income or loss from and nondeductible expenses allocated and Enter the identification number of the beneficiary each activity. apportioned to Arkansas.

# ITEM D

Box 5b. Farm income Box 16b. Distributions Enter the name and address of the beneficiary Enter the beneficiary s share of farm income loss

Enter the beneficiary s share of distributions allocated allocated and apportioned to Arkansas. and apportioned to Arkansas.

# ITEM E

Box 6b. Net short-term capital gain (loss) Check the box Yes indicating the beneficiary is Box 17b. Arkansas withholding and other an Arkansas resident. Otherwise, check "No" and Enter the beneficiary s share of net shortterm capital payments provide state of legal residence. 'RQRWOHDYHEODQN gain (loss) allocated and apportioned to Arkansas. If tax was withheld or other payments made on behalf Enter the share of net-short term capital gain on of the beneficiary enter the amount here Form AR1002F/AR1002NR Schedule A, line 11. Do ITEM F not enter a loss in box 6a. If applicable enter the beneficiary s percentage of NOTE: Arkansas has adopted IRC Section 179 in allocated income for the tax year. its entirety as in eႇect on January   Box 7b. Net long-term capital gain (loss) Enter the beneficiary s share of net longterm capital PART III gain (loss) allocated and apportioned to Arkansas. If a trust has an ownership interest in a business Longterm capital gain distributed to beneficiaries A beneficiary who is a resident of Arkansas must entity subject to a pass-through entity tax or PET tax are 100% exempt , only to be claimed once on the in Arkansas or other states, the income should not report income from sources within and outside FIT return. Enter the share of net long-term capital Arkansas. Nonresidents only report their Arkansas be included on the AR K1 FE form unless there are gain on Form AR1002F/AR1002NR, Schedule A, allocated share of income. The AR K-1FE has two guaranteed payments from a partnership. line 3. Do not enter a loss in box 7a. columns for most boxes in Part III The first column is income allocated and apportioned to Arkansas. This column should be completed by both resident Box 8b. Unrecaptured Section 1250 gain and nonresident beneficiaries The second column Enter the beneficiary s share of unrecaptured section should be completed by resident beneficiaries only 1250 gain allocated and apportioned to Arkansas. The column should include the residents share of There are three types of unrecaptured section 1250 income (loss) from all sources, including income gain. Report your share of this unrecaptured gain on (loss) earned from other states. the Unrecaptured Section 1250 Gain Worksheet, line 18b in the instructions for federal Schedule D. For example, a nonresident trust has $100,000.00 of business income, $30,000.00 of which is allocated and apportioned to Arkansas. The trust has a Box 9b. Net Section 1231 gain (loss) nonresident and resident beneficiary each receiving Enter the beneficiary s share of net section  gain 50% of income (loss). On AR K-1FE, the trust would (loss) allocated and apportioned to Arkansas. report $15,000.00 in column 1, box 3a, for both the nonresident and resident beneficiary The trust would report $50,000.00 income from all sources, in column  box b for the resident beneficiary Arkansas K-1FE Inst. Page 2 (R 6/30/2025)