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New Member
posted Apr 12, 2020 2:24:36 PM

Does material participation yes or no mean i have to or not have to enter in this information K1 Box 1 ordinary income ?

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1 Replies
Expert Alumni
Apr 12, 2020 2:41:39 PM

No, material participation is separate from the reported ordinary income in Box 1. 

 

Please see this discussion: Material participation in a young business for a more in depth explanation. Also, I recommend clicking the learn more links on the material participation page to better determine what answer applies in your case.

@dmariegilbert