--- title: Partnership Income description: Partnership Income --- [Skip to content](https://help.holistiplan.com/partnership#main-content) English Show submenu for translations [More support](https://help.holistiplan.com/kb-tickets/new?hsLang=en) [![Holistiplan Logo (800x200 px).webp\]](https://help.holistiplan.com/hs-fs/hubfs/Holistiplan%20Logo%20(800x200%20px).webp?width=160&height=40&name=Holistiplan%20Logo%20(800x200%20px).webp)](https://www.holistiplan.com/) Open main navigation Close main navigation - English Show submenu for translations - [More support](https://help.holistiplan.com/kb-tickets/new) Holistiplan Knowledge Base - There are no suggestions because the search field is empty. 1. [Help Center](https://help.holistiplan.com/?hsLang=en) 2. [Scenario Analysis](https://help.holistiplan.com/scenario-analysis?hsLang=en) 3. [Supplemental Income](https://help.holistiplan.com/scenario-analysis?hsLang=en#supplemental-income) # Partnership Income ## Model partnership activities reported on Schedule E, Part II. Each partnership is modeled as its own entity, allowing you to evaluate the tax impact of individual businesses while also seeing the combined results on the **Summary** tab. Holistiplan automatically evaluates passive activity treatment, self-employment (SE) tax, Net Investment Income Tax (NIIT), and Qualified Business Income (QBI) as you complete each entity. --- ### **Before You Begin** To complete an partnership entity, you may want to have: - Schedule K-1 (Form 1065 or Form 1120-S) - Ordinary business income or loss (Box 1) - Prior-year suspended passive losses - Participation information - QBI information, if applicable --- ### **Getting Started** Navigate to the **Schedule E Income** subsection of the **Schedule 1 Income** section and click the pencil icon in the **Partnerships and S Corps** row:  ![](https://help.holistiplan.com/hs-fs/hubfs/undefined-Jul-27-2026-05-01-29-0347-PM.png?width=670&height=461&name=undefined-Jul-27-2026-05-01-29-0347-PM.png)  For scenarios created by copying an uploaded return, Holistiplan automatically creates an entity for **each partnership** reported on Schedule E, Part II, using the entity name. These entities provide a starting point. Review each one and enter the remaining financial and tax information. *Note that while the system will create entities for any listed item on the return, because Holistiplan does not read the individual income and expense items from Schedule E entities, that information will not port over to scenarios  created by copying the return.*    Alternatively, if the return did not include a partnership (or S-corp), click the **+ Add Entity** button. ![](https://help.holistiplan.com/hs-fs/hubfs/undefined-Jul-27-2026-05-01-52-9597-PM.png?width=670&height=309&name=undefined-Jul-27-2026-05-01-52-9597-PM.png)  --- ### **Adding a Partnership** First, name the entity to differentiate it from other entries. Then choose **Partnership** in the **Entity Type** drop-down menu, followed by the applicable selection in the **Partner Type** menu. Partner type will determine the taxpayer’s self-employment tax exposure and passive activity defaults.  ![](https://help.holistiplan.com/hs-fs/hubfs/undefined-Jul-27-2026-05-02-20-9593-PM.png?width=670&height=314&name=undefined-Jul-27-2026-05-02-20-9593-PM.png)  Next, in the **Entity Details**, indicate the following: - Which taxpayer is associated with the partnership - Whether the partnership is considered a Specialized Service Trade or Business (SSTB; which will potentially impact any Qualified Business Income Deduction calculations) - Participation (Material or not material; necessary to determine passive activity treatment, deductible losses, Net Investment Income Tax, and QBI eligibility.)  ![](https://help.holistiplan.com/hs-fs/hubfs/undefined-Jul-27-2026-05-02-54-8863-PM.png?width=662&height=320&name=undefined-Jul-27-2026-05-02-54-8863-PM.png)  --- ### **K-1 Income** Enter the ordinary business income or loss from **Schedule K-1, Box 1**. Additionally, include any guaranteed payments made by the partnership to the taxpayer, as well as any health insurance premiums paid by the partnership on behalf of the taxpayer.  ![](https://help.holistiplan.com/hs-fs/hubfs/undefined-Jul-27-2026-05-03-22-7152-PM.png?width=656&height=257&name=undefined-Jul-27-2026-05-03-22-7152-PM.png)  Depending on the partnership type, Holistiplan will evaluate whether the income is subject to self-employment tax. If the partnership pays health insurance premiums on behalf of the taxpayer, Holistiplan will include the appropriate deduction in the **Schedule 1 Deductions (Above the Line)** section. --- ### **Passive Loss Carryforward** Enter any suspended passive losses carried forward from prior years. Holistiplan will combine prior-year suspended losses with any losses in the current year to determine any offsetting against income in the current year. ![](https://help.holistiplan.com/hs-fs/hubfs/undefined-Jul-27-2026-05-04-01-8859-PM.png?width=656&height=113&name=undefined-Jul-27-2026-05-04-01-8859-PM.png) --- ### **Qualified Business Income (QBI)** Complete the QBI section if the business generates qualified business income. This information is necessary to arrive at the appropriate amount of the QBI deduction if taxable income exceeds specific thresholds.   ![](https://help.holistiplan.com/hs-fs/hubfs/undefined-Jul-27-2026-05-04-30-9715-PM.png?width=658&height=178&name=undefined-Jul-27-2026-05-04-30-9715-PM.png)  --- ### **Review the Results**  Every entity includes a **Summary card** that updates automatically.   ![](https://help.holistiplan.com/hs-fs/hubfs/undefined-Jul-27-2026-05-05-02-4376-PM.png?width=670&height=189&name=undefined-Jul-27-2026-05-05-02-4376-PM.png)  --- ### **Summary Tab** The **Summary tab** combines every partnership and S-corporation into a single view.  ![](https://help.holistiplan.com/hs-fs/hubfs/undefined-Jul-27-2026-05-05-25-7217-PM.png?width=670&height=470&name=undefined-Jul-27-2026-05-05-25-7217-PM.png)  - [Getting Started at Holistiplan - 101](https://help.holistiplan.com/getting-started-at-holistiplan-101?hsLang=en#main-content) - [How to Contact Support](https://help.holistiplan.com/getting-started-at-holistiplan-101?hsLang=en#how-to-contact-support) - [Ready to Get Started?](https://help.holistiplan.com/getting-started-at-holistiplan-101?hsLang=en#ready-to-get-started) - [Getting Started with Your Households](https://help.holistiplan.com/getting-started-at-holistiplan-101?hsLang=en#getting-started-with-your-households) - [Tax Report](https://help.holistiplan.com/getting-started-at-holistiplan-101?hsLang=en#tax-report) - [Scenario Analysis](https://help.holistiplan.com/getting-started-at-holistiplan-101?hsLang=en#scenario-analysis) - [Master Your Dashboard](https://help.holistiplan.com/getting-started-at-holistiplan-101?hsLang=en#master-your-dashboard) - [Tips for New Users](https://help.holistiplan.com/getting-started-at-holistiplan-101?hsLang=en#tips-for-new-users) - [Deeper Dive at Holistiplan - 201](https://help.holistiplan.com/deeper-dive-at-holistiplan-201?hsLang=en#main-content) - [Mastering the Tax Report: Advanced Insights and Analysis](https://help.holistiplan.com/deeper-dive-at-holistiplan-201?hsLang=en#mastering-the-tax-report-advanced-insights-and-analysis) - [Advanced Planning with Scenario Analysis](https://help.holistiplan.com/deeper-dive-at-holistiplan-201?hsLang=en#advanced-planning-with-scenario-analysis) - [Roth Projection Tool](https://help.holistiplan.com/deeper-dive-at-holistiplan-201?hsLang=en#roth-projection-tool) - [Using the Tax Explainer](https://help.holistiplan.com/deeper-dive-at-holistiplan-201?hsLang=en#using-the-tax-explainer) - [Tax Letter- Adding Value for Your Clients](https://help.holistiplan.com/deeper-dive-at-holistiplan-201?hsLang=en#tax-letter-adding-value-for-your-clients) - [Holistiplan Basics](https://help.holistiplan.com/holistiplan-basics?hsLang=en#main-content) - [Uploading Returns](https://help.holistiplan.com/holistiplan-basics?hsLang=en#uploading-returns) - [Household Information](https://help.holistiplan.com/holistiplan-basics?hsLang=en#household-information) - [Tools & Resources](https://help.holistiplan.com/holistiplan-basics?hsLang=en#tools-resources) - [Firm Admins](https://help.holistiplan.com/holistiplan-basics?hsLang=en#firm-admins) - [Holistiplan Academy - Upload Breakdown](https://help.holistiplan.com/holistiplan-academy-upload-breakdown?hsLang=en#main-content) - [Tax Report](https://help.holistiplan.com/holistiplan-academy-upload-breakdown?hsLang=en#tax-report) - [Scenario Analysis](https://help.holistiplan.com/holistiplan-academy-upload-breakdown?hsLang=en#scenario-analysis) - [Billing and Subscriptions](https://help.holistiplan.com/billing-and-subscriptions?hsLang=en) - [User Admin](https://help.holistiplan.com/user-admin?hsLang=en) - [Tax Reports](https://help.holistiplan.com/tax-reports?hsLang=en#main-content) - [Tax Report FAQ](https://help.holistiplan.com/tax-reports?hsLang=en#tax-report-faq) - [Scenario Analysis](https://help.holistiplan.com/scenario-analysis?hsLang=en#main-content) - [General Administration and Editing](https://help.holistiplan.com/scenario-analysis?hsLang=en#general-administration-and-editing) - [Business Income](https://help.holistiplan.com/scenario-analysis?hsLang=en#business-income) - [Charitable Giving Strategies](https://help.holistiplan.com/scenario-analysis?hsLang=en#charitable-giving-strategies) - [Credits and Deductions](https://help.holistiplan.com/scenario-analysis?hsLang=en#credits-and-deductions) - [Equity Compensation](https://help.holistiplan.com/scenario-analysis?hsLang=en#equity-compensation) - [Filing Status](https://help.holistiplan.com/scenario-analysis?hsLang=en#filing-status) - [Range Calc/Solve for Max](https://help.holistiplan.com/scenario-analysis?hsLang=en#range-calc-solve-for-max) - [Retirement Plan Contributions and Distributions](https://help.holistiplan.com/scenario-analysis?hsLang=en#retirement-plan-contributions-and-distributions) - [Roth Conversions](https://help.holistiplan.com/scenario-analysis?hsLang=en#roth-conversions) - [State Taxes](https://help.holistiplan.com/scenario-analysis?hsLang=en#state-taxes) - [Strategy Illustrations](https://help.holistiplan.com/scenario-analysis?hsLang=en#strategy-illustrations) - [Wages](https://help.holistiplan.com/scenario-analysis?hsLang=en#wages) - [Scenario Analysis FAQ](https://help.holistiplan.com/scenario-analysis?hsLang=en#scenario-analysis-faq) - [Supplemental Income](https://help.holistiplan.com/scenario-analysis?hsLang=en#supplemental-income) - [Roth Projection Tool](https://help.holistiplan.com/roth-projection-tool?hsLang=en) - [Tax Letters](https://help.holistiplan.com/tax-letters?hsLang=en) - [Explainer Reports](https://help.holistiplan.com/explainer-reports?hsLang=en) - [P&C Insurance Planning](https://help.holistiplan.com/pc-insurance-planning?hsLang=en#main-content) - [Basics](https://help.holistiplan.com/pc-insurance-planning?hsLang=en#basics) - [Getting Started](https://help.holistiplan.com/pc-insurance-planning?hsLang=en#getting-started) - [Features/Additional Information](https://help.holistiplan.com/pc-insurance-planning?hsLang=en#features-additional-information) - [Integrations](https://help.holistiplan.com/integrations?hsLang=en#main-content) - [Single Sign-On](https://help.holistiplan.com/integrations?hsLang=en#single-sign-on) - [API](https://help.holistiplan.com/integrations?hsLang=en#api) - [CRM Integrations](https://help.holistiplan.com/integrations?hsLang=en#crm-integrations) - [Integrations](https://help.holistiplan.com/integrations?hsLang=en#integrations) - [Security](https://help.holistiplan.com/security?hsLang=en) - [Tax Transcripts](https://help.holistiplan.com/tax-transcripts?hsLang=en) Copyright © 2025, Holistiplan LLC