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dmachado17
Returning Member

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.
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1 Reply

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

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.

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