where do I enter expenses for musician

[davidlecates]

In the past I have listed my business as a musician and entered my income and expenses there.  This year our band decided to form an LLC.  I now get my income reported on a K-1.  Do I still put my expenses under the business tab (Schedule C) or do I need to do away with the business under that tab since income is now reported under personal with a K-1

[DianeW777 · Accepted solution]

Yes, you enter them a different way. You are allowed to deduct, from this income, any expenses you are required to pay that are not reimbursed. In my example I used the 1065-K1.

1. Sign into your TurboTax Account
2. Search (upper right) > Type k1 > Select the Jump to... link
3. Select Update beside your K1 > Edit beside the Activity 
4. Continue to the screen 'Describe the Partnership'
5. Check the box beside 'I am required to pay supplemental business expenses on behalf of this partnership/LLC for which I am not reimbursed'
6. Check the box beside ' All of my investment in this activity is at risk' and/or any other box applicable
7. Continue through the remaining screens to enter your expenses
8. See the image below.

                          

[davidlecates]

Thanks.  I do remember seeing that and wondered if that is where it should go.  I appreciate the help!!  The word requirement was what kept me from going done that road.

[davidlecates]

Follow up question.

In previous years when entering income and expenses under business as a musician I had depreciated a couple of guitars.  Do I continue to depreciate under business or can I do that under the K-1 expenses also?

[PatriciaV]

Yes, you can report depreciation as an unreimbursed partner expense. But you would need to calculate the depreciation yourself.

Additional Information:

• IRS Publication 946 How To Depreciate Property
• TT FAQ: What is Depreciation? (includes other relevant links)