I recently prepared a partnership return that had income in several states. I noticed that the net income from the partnership included In all the state K1s did not equal to the total net income shown on the federal schedule K or the federal K1.
I believe is wrong because I figure the total net income for all the states should equal to net income showing up on schedule k or federal K1.
Then I noticed some of the state K1s did not
Include capital gains but in the federal K1 they were included which could explain the difference in net income between the state k1s and federal k1s. So, the question is could there be a reason why there's a difference between the federal and state net incomes or are they supposed to be the same all of the time? Thanks!
I believe is wrong because I figure the total net income for all the states should equal to net income showing up on schedule k or federal K1.
Then I noticed some of the state K1s did not
Include capital gains but in the federal K1 they were included which could explain the difference in net income between the state k1s and federal k1s. So, the question is could there be a reason why there's a difference between the federal and state net incomes or are they supposed to be the same all of the time? Thanks!