Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
ijolley1203
New Member

I own 10% of an LLC and receive a K1 from that LLC. I own 100% of another LLC that receives income from the LLC that I own 10% of .Where do I show the income for my LLC?

If I put my income for the LLC that I am the sole member of, it will restate my income twice since I already have it listed on the K1 section. Is there another area that I need to put in that income or expenses that I am missing? It does not look right to me.

3 Replies
DS30
New Member

I own 10% of an LLC and receive a K1 from that LLC. I own 100% of another LLC that receives income from the LLC that I own 10% of .Where do I show the income for my LLC?

For your 100% owned LLC, the IRS considered this a disregarded entity for federal income tax purposes. Depending on the type of business this 100% owned LLC is involved in, you will put this information on your 1040 under business income and expenses (Schedule C) or rental income and expenses (Schedule E) if the LLC is for rental activities.

For the LLC of which you are a 10% owner, you will enter this K-1 information separately under Business Investment and Estate/Trust Income

The fact that your 100% LLC receives income from your 10% LLC will not affect how your report these 2 entities on your federal tax return. However, if your 10% LLC ownership is through your 100% LLC, then you will only include this information once under your 100% LLC information. (You would not again enter this 10% LLC owned by your 100% LLC separately under the Business Investment and Estate/Trust Income)

clawson826
New Member

I own 10% of an LLC and receive a K1 from that LLC. I own 100% of another LLC that receives income from the LLC that I own 10% of .Where do I show the income for my LLC?

I wn 100% of an LLC that owns 20% of another LLC from which my LLC receives income.  But Turbo Tax only has an area to enter the 20% LLC info in personal income, not in the business income section.  When i enter the disregarded entity info, it wants my SSN not my LLC's Tax ID Number.  How do i enter this properly?

Critter-3
Level 15

I own 10% of an LLC and receive a K1 from that LLC. I own 100% of another LLC that receives income from the LLC that I own 10% of .Where do I show the income for my LLC?

Ok ... let me see.  You have a single member LLC which files a Sch C ... if so it cannot own 20% of anything since it is a disregarded entity.  The K-1 that you receive (even if it is in the Sole prop EIN) is entered in the Personal income section as a K-1.   

 

You do NOT want it to be entered on the Sch C where you will have to pay SE taxes on it.   

 

Now the Sole Prop could preform work for the other LLC and get a 1099-NEC for the work ... that would go on the Sch C.   

Dynamic AdsDynamic Ads
Privacy Settings
v