We started an LLC in 2015 (wife owns). I see where you enter sales (revenue) and expenses in the "business income/expense" section. I have two questions:
1. Owner Distribution - we decided to take a small owner distribution which became family income for us but appears to be a business expense in QuickBooks. How do we report the Owner Distribution in TurboTax?
2. Expense vs. Income - in QuickBooks, I have compiled all of our expenses and all of our sales. The balance is $706.94. However, TurboTax shows a business income of (Gross $8,669 and $2,658). I saw there is a "year end value of inventory" which brings down "cost of purchases." Also, not every "expense" fits perfectly into one of the "Business Expenses" categories. But, why is there such a discrepancy between our simple expense vs. sales calculation and the "income" showing in TurboTax?
I'm assuming that this llc is owned only by your wife, and is not a husband and wife partnership.
How do we report the Owner Distribution in TurboTax?
You don't report it. An owner's distribution is not an expense to the llc or income to the owner. Rather, the owner is taxed on the llc's income and expenses before any distribution of profits. In Quickbooks you designate the tax line item each expense category should be assigned to. There should be no expense category line item assigned for owner's draw because they are not deductible.