Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Returning Member
posted Jan 13, 2021 3:18:44 PM

Why is Business 2020 showing my business expenses as Ordinary Business Income rather than as a deduction?

Every time I enter my expenses, they do not show up as deductions, but rather as a negative amount in line 1 (of K-1) which is Ordinary Business Income.

0 1 165
1 Replies
Level 15
Jan 13, 2021 3:40:35 PM

Are you using TurboTax Business to prepare a return for a partnership/LLC or other pass-through entity?

 

If so, the income and expenses are passed through on Schedule K-1 to the partners/members/shareholders.

 

If you are only entering expenses (before income or in excess of income), then the figure on Line 1 may be a negative number.