Schedule AR K-1 (Partnership) — Partner Share of Income 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 $UNDQVDV For more information, see Part III. Schedule AR K-1 uses two columns to distinguish between resident and nonresident reporting requirements. • &ROXPQ D ±5HVLGHQW7RWDO For Arkansas residents. Enter the full distributive share of each item, including amounts from other states. • &ROXPQ E ±$UNDQVDV6RXUFH For non-residents and part-year residents. Enter only the portion allocated or apportioned to Arkansas. ([DPSOH An entity with $100,000 of income apportions 30% to Arkansas. Two equal owners (one resident, one nonresident) each hold 50%. • Resident reports  in Column (a), Box 1a. • Nonresident reports  in Column (b), Box 1b ($100,000 × 50% × 30%). Apply this column structure to all items in Part III. Residents report Arkansas-adjusted totals; nonresidents and part-year resident individuals, partnerships, and corporations report only Arkansas-source amounts. Other Useful Information (Preparers and AR K-1 Recipients) The AR K-1 reports each member's distributive share of income, loss, deductions, credits, and other items from a pass through entity with activity in Arkansas. It is the member's primary record for properly reporting Arkansas taxable amounts on the member's own return and for documenting adjustments required under Arkansas law. Keep the AR K-1 with your tax records and use it to complete the Arkansas return and any schedules that require item level detail. %R[E²$UNDQVDVZLWKKROGLQJRURWKHUSD\PHQWV Your pass through entity may have remitted tax on your behalf. Box 20b reports your share of

 Arkansas withholding paid with a withholding pass through filing on Form AR PT  tax paid through an income composite return for eligible nonresident members ARCR  andor  taxes the entity paid if it elected to file and pay under the pass through entity tax (AR1100PET). These amounts are reported for transparency, but they are not all treated the same on an individual return: • May be claimed as Arkansas withholding on an individual return Amounts withheld from a withholding pass through return filing and tax paid from an income composite tax filing ARCR  to the extent attributable to you • May not be claimed as Arkansas withholding Any tax paid by an entity that elected to file and pay income tax on ARPET Members of a PET electing entity may exclude the applicable pass through income on their individual Arkansas return, but they cannot claim their share of PET paid as Arkansas withholding. • AR

PT The same rules apply to reported income tax withheldpaid on Form AR

PT While income tax paid on ARPET cannot be claimed for withholding it is useful information for federal tax purposes andor other state filing purposes Review the AR K-1 carefully and retain underlying statements that show how each amount was determined. Enter the items from the AR K-1 on your Arkansas return as instructed to ensure your return refiects the correct Arkansas income deductions credits and payments Arkansas K Inst Page  R 

INSTR Box 2. Net Rental Real Estate Income Box 12. Guaranteed Payments

# GENERAL INSTRUCTIONS

(Loss) Enter the owner's share of guaranteed payments FOR AR K-1 Enter the owner's distributive share of net rental real allocated to Arkansas (Schedule K, line 13, for Form estate income or loss as adjusted by Arkansas law. AR1050). This includes income from properties held for rent Use this form to report the partner and shareholder's Box 13. Section 179 Deduction as part of real estate activities (Schedule K, line 2, share of income, deductions, credits, etc. from a Enter the owner s share of the section  expense partnership, corporation, or LLC. Attach this form to for Form AR1050). apportioned to Arkansas (Schedule K, line 11, for your AR1050, AR1100S, or AR1100PET. Generally, Box 3. Other Net Rental Income (Loss) Form AR1050). you must report items shown on your Arkansas Enter the owner's net income (loss) from rental klqbW Arkansas has adopted IRC Section  in Schedule AR K-1 the same way that the corporation activities other than those reported on Form 8825 its entirety as in eႇect on January   or partnership treated the items on it's returns. (Schedule K, Line 3, for Form AR1050). Box 14. Contributions and Other Deductions Return Type Box 4. Interest Income Enter the owner's share of cash/non-cash charitable Enter the owner's share of interest income allocated contributions and other deductions apportioned or apportioned to Arkansas. Interest from U.S. Choose your return type from the three listed on this to Arkansas (Schedule K, lines 12a-12c, for Form government obligations and bonds issued by the form: S-Corporation (AR1100S), Partnership/LLC AR1050). Attach Schedule. State of Arkansas or its political subdivisions are (AR1050), or Pass-Through Entity Tax (AR1100PET). Box 15. Credits exempt under Ark Code Ann †  Interest If you choose the Pass-Through Entity Tax, please Enter the owner's share of credits apportioned to from other sources, such as out-of-state municipal back out your income and deductions on the AR-OI Arkansas. bonds, corporate bonds, and investment interest is lines 7 & 15. Your capital gains will be backed out not exempt and should be included in taxable income. Box 16. Items Affecting Shareholder Basis on the AR1000D. For more information, reference

Schedule K line  for Form AR  Specify items and enter amounts that affected page 12 of the AR1000F and AR1000NR instructions. Box 5. Dividends shareholder basis. Attach schedule.

# PART I

Enter the owner's distributive share of dividend Box 17. Tax-Exempt Income and income. Dividends are generally taxable in Arkansas Nondeductible Expenses unless they are derived from exempt U.S. obligations Complete Arkansas Schedule AR K-1 for each Enter the owner's share of tax-exempt income and or other sources excluded under Arkansas law, Corporation, Partnership/LLC or Pass- Through nondeductible expenses apportioned to Arkansas Entity Tax . such as dividends received by a corporation doing (Schedule K, lines 17a-c, for Form AR1050). business within this state from a subsidiary if at least Box 18. Distributions fqbj ^ ~-# _ - Enter the federal identification 80% owned by the corporation (Schedule K, line 5, Enter the owner's share of distributions apportioned number (FEIN) of the corporation, partnership, or for Form AR1050). to Arkansas (Schedule K, lines 17a-b, for Form other pass-through entity in Item A. Then, in Item B, Box 6. Royalties AR1050). enter the legal name and complete mailing address Enter the owner's share of royalties apportioned/ of the entity. Box 19. Investments and Other Items allocated to Arkansas. Royalties from tangible

# PART II

Enter the owner's share of investments, expenses personal property, patents, and copyrights are and other items apportioned to Arkansas. Specify allocated to Arkansas based on the extent utilized the investments, expenses and other items and enter in Arkansas Schedule K line  for Form AR  Complete Arkansas Schedule AR K-1 for each the amounts. shareholder or partner. Box 7. Net Short-Term Capital Gain (Loss) Box 20. Arkansas Witholding or Other Enter the owner's share of net short-term capital gain Items C and D - Enter the shareholder/member or Payments (loss) apportioned to Arkansas (Schedule K, line 7, partner s identification number in Item C SSN FEIN If tax was withheld or other payments made on behalf for Form AR1050). or other applicable tax ID), and their legal name and of the pass-through entity's owner, enter the amount Box 8. Net Long-Term Capital Gain (Loss) complete mailing address in Item D. here Attach 

PT to verify withholding Enter the owner's share of net long-term capital gain Item E - Indicate whether the individual or entity is (loss) apportioned to Arkansas (Schedule K, line 8 an Arkansas resident by checking "Yes" or "No." If for Form AR1050). "No" is selected, enter the state of legal residence in Box 9. Unrecaptured Section 1250 Gain the space provided. Do not leave blank. Enter the pass-through entity owner's pro rata share Items F and G - In Item F, report the shareholder's of unrecaptured 1250 gain apportioned to Arkansas. There are three types of unrecaptured section 1250 percentage of stock ownership for the tax year. In gain. Report your share of this unrecaptured gain Item G enter the partner¶s share of profit loss and on the Unrecaptured Section  Gain Worksheet capital as percentages, both at the beginning and line 18b in the instructions for federal Schedule D. end of the year. The unrecaptured Section 1250 gain is included in Item H - Provide the Arkansas apportionment the net Section 1231 gain on Schedule K of forms percentage used to attribute income to Arkansas. The AR1050 and AR1100PET. However, it is separately percentage reported should match the percentage as stated on Schedule AR K-1 for informational filed on the return If additional information is required purposes. to explain the calculation, attach a supporting Box 10. Net Section 1231 Gain (Loss) statement. Enter the owner's share of net section 1231 gain

# PART III

loss apportioned to Arkansas Schedule K line  for Form AR1050). Box 1. Ordinary Income (Loss) Box 11. Other Income (Loss) Enter the owner's share of net income or loss Enter the owner's share of other income (loss) from regular trade or business activities, excluding apportioned to Arkansas (Schedule K, line 10, for separately stated items like capital gains, rental Form AR1050). If the partner or shareholder had income, or portfolio income (Schedule K, line 1, for other income (loss) not included in boxes 1 through Form AR1050).

 enter the total and attach a statement to specify other income (loss). Arkansas K Inst Page  R