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5petals
New Member

I am contributing to a film production. will be part of the Film LLC but income on that will come in 2022. How do i record expense as part owner of LLC?

How do I record Schedule C as part owner of LLC before K reporting?
6 Replies
Opus 17
Level 15

I am contributing to a film production. will be part of the Film LLC but income on that will come in 2022. How do i record expense as part owner of LLC?

You don't file a schedule C.  If you are a member in a multi-member LLC, the LLC prepares a 1065 partnership return and issues a K-1 to each partner.  

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
Carl
Level 15

I am contributing to a film production. will be part of the Film LLC but income on that will come in 2022. How do i record expense as part owner of LLC?

as part owner of LLC

That part of your statement indicates you have a multi-member LLC. For an LLC with more than one owner, you do not and can not use SCH C. All business income/expenses are reported on an 1065-Partnership/Multi-member LLC tax return. The business will then issue each owner a K-1. Each owner will need that K-1 in order to complete their personal 1040 tax return.

The 1065 partnership return is due by March 15th - one month before the personal 1040 tax return deadline. All K-1's must be issued by March 15th also.

To complete the 1065 return, you will need TurboTax Business.  https://turbotax.intuit.com/small-business-taxes/

 

 

Critter-3
Level 15

I am contributing to a film production. will be part of the Film LLC but income on that will come in 2022. How do i record expense as part owner of LLC?

The money you invested in the partnership becomes your basis in the partnership ... the income and expenses are reported on the partnership return and are passed thru to you on the K-1 form ... do NOT also file a Sch C as that is not correct. 

DEBTT
Level 1

I am contributing to a film production. will be part of the Film LLC but income on that will come in 2022. How do i record expense as part owner of LLC?

Thank you very much for contributing

DEBTT
Level 1

I am contributing to a film production. will be part of the Film LLC but income on that will come in 2022. How do i record expense as part owner of LLC?

This makes sense and is very helpful. Thank you.

It seems there are possibly 2 things I need to consider: Section 181 and 168A.  Are you familiar with either one of these re: film deductions?

ThomasM125
Employee Tax Expert

I am contributing to a film production. will be part of the Film LLC but income on that will come in 2022. How do i record expense as part owner of LLC?

@DEBTT Code 181 allows an investor in a qualified film or television or live theatrical production to expense the purchases of equipment and other items which would normally be required to be depreciated over a number of years. Thus, you may be able to accelerate the deduction of major purchases. In general, the production must have a budget of under $15,000,000 and the production must be done in the United States. Here is more on the section  Section 181

 

Section 168(a) applies to accelerated depreciation, wherein you are allowed to deduct more in the early useful life of an asset than you would under straight line depreciation, where you take an even deduction each year. Here is more on section 168(a)  Section 168(a)

 

 

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