Separately stated items are income, deductions, gains, losses, and tax preferences that might affect the taxable income of shareholders differently, depending on their other income and losses. ... Deductions such as Section 179 deduction, charitable contributions, and investment interest expense.

Where are separately stated items reported?

Separately stated items are reported in Schedule K of Form 1065. Each partner is entitled to his/her share of the separately stated items, and the character of separately stated items is determined on the partnership level, while the taxation thereof is determined at the individual partner level.

Are distributions separately stated?

Three of these separately stated items are ordinary income, guaranteed payments and distributions. Ordinary income is your share of the partnership's net income. ... Distributions are withdrawals of cash and property from the partnership. They are generally not taxable.