I entered all of my business purchases, expenses, etc on the business income section of my return..I then entered my share on the K-1 section on the personal income section. However, I feel like the income is being doubled and accounted for twice. Is this the case? THanks
You don't report your business income on your personal return. You would only report your share of business income/expenses by reporting Schedule K-1 on your personal return.
In other words, if you have S-corporation or Partnership, you file that business using business software(which I think you did since you have the K-1). Then, you report only K-1 form on your personal return.
The business section you are referring to is for self-employed individuals filing Schedule C, not S-corp or Partnership (which are the entities with Schedule K-1). So you would not enter your business there. All you have to do is enter your Schedule K-1.
You don't report your business income on your personal return. You would only report your share of business income/expenses by reporting Schedule K-1 on your personal return.
In other words, if you have S-corporation or Partnership, you file that business using business software(which I think you did since you have the K-1). Then, you report only K-1 form on your personal return.
The business section you are referring to is for self-employed individuals filing Schedule C, not S-corp or Partnership (which are the entities with Schedule K-1). So you would not enter your business there. All you have to do is enter your Schedule K-1.
Also, I have a partner that dropped to 1% ownership at the beginning of the tax year 01/01/2016. At the end of the tax year he dropped off of the business 12/31/2016. I know I need to file a final 1065, but how do I go about that? On the business software I only see an option for "Is filing its final return because it was closed by the end of the year" Then has a
"yes" and "no" option..The business is still open and owned 100% by me now. So Should I still be choosing "yes" as the final?