k1-generator

Business

Generates K-1 schedules for partner distributions with tax allocations

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Source SKILL.md: https://github.com/a5c-ai/babysitter/blob/HEAD/library/specializations/domains/business/venture-capital/skills/k1-generator/SKILL.md

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K1 Generator

Overview

The K1 Generator skill produces Schedule K-1 tax documents for limited partners, handling complex tax allocations including carried interest treatment under IRC Section 1061. It ensures accurate, timely tax reporting for fund distributions.

Capabilities

K-1 Preparation

Generate Schedule K-1 forms
Calculate partner tax allocations
Handle tiered partnership structures
Support state K-1 requirements

Tax Allocation

Allocate income by character (ordinary, capital gains)
Handle qualified opportunity zone provisions
Apply Section 1061 carried interest rules
Manage tax basis tracking

Distribution Reporting

Report distributions to partners
Track return of capital vs. gains
Handle installment sale treatments
Manage escrow release allocations

Compliance Support

Generate required tax schedules
Support LP tax planning
Provide allocation explanations
Track filing deadlines

Usage

Generate K-1s

Input: Fund activity, partner data
Process: Calculate allocations, generate forms
Output: K-1 documents by partner

Calculate Tax Allocations

Input: Fund income/loss, allocation provisions
Process: Apply allocation methodology
Output: Partner allocation schedules

Handle Distribution Reporting

Input: Distribution data
Process: Classify and allocate
Output: Distribution reporting schedules

Prepare State K-1s

Input: State allocation data
Process: Generate state-specific K-1s
Output: State K-1 documents

K-1 Components

Component	Description
Box 1-3	Ordinary income/loss
Box 8-10	Capital gains/losses
Box 11	Section 1231 gains/losses
Box 13-20	Other items
Schedules	Supporting detail

Integration Points

Distribution Waterfall Calculation: Allocation basis
Waterfall Calculator: Distribution data
Tax Coordinator (Agent): Support tax work
Fund Accountant (Agent): Coordinate accounting

Tax Considerations

Consideration	Treatment
Section 1061	3-year hold for LTCG on carry
QSBS	Section 1202 exclusion tracking
State Taxes	State-specific allocations
Foreign Partners	Withholding requirements

Best Practices

Start K-1 preparation early in year-end
Coordinate with fund tax advisors
Provide LP tax planning estimates
Document allocation methodology
Track basis and capital accounts accurately