How do I report my business income on my personal 1040 return?

[josephdibiaggio]

I entered all of my business purchases, expenses, etc on the business income section of my return..I then entered my share on the K-1 section on the personal income section. However, I feel like the income is being doubled and accounted for twice. Is this the case? THanks

[MargaretL · Accepted solution]

You don't report your business income on your personal return. You would only report your share of business income/expenses by reporting Schedule K-1 on your personal return.

In other words, if you have S-corporation or Partnership, you file that business using business software(which I think you did since you have the K-1).  Then, you report only K-1 form on your personal return. 

The business section you are referring to is for self-employed individuals filing Schedule C, not S-corp or Partnership (which are the entities with Schedule K-1). So you would not enter your business there.  All you have to do is enter your Schedule K-1. 

[josephdibiaggio]

Thank you!

[josephdibiaggio]

Also, I have a partner that dropped to 1% ownership at the beginning of the tax year 01/01/2016. At the end of the tax year he dropped off of the business 12/31/2016. I know I need to file a final 1065, but how do I go about that? On the business software I only see an option for "Is filing its final return because it was closed by the end of the year" Then has a
"yes" and "no" option..The business is still open and owned 100% by me now. So Should I still be choosing "yes" as the final?