what are confused about?
box 7 and 13 flow to schedule E page 1 they net to $1846 (box 7 royalties as you would expect and box 13 royalty expenses - don't ask why the IRS wants it this way)
since the LLC is based in Co you have Co source income and will need to file a non-resident return,
you then take credit on your NY return for taxes paid to other states
you must do Co first for the proper tax credit to be calculated for new york
the cash you receive may not match the net income. there is no tax law that would require it to match. you could have that income and not receive any distributions. distributions do have an effect on tax basis but are not taxable as long as you have a positive tax basis.
assuming this is the first year line 7 less line 13 increases your tax basis in the LLC and the distribution reduces it. if schedule L is completed that should match
line 20 will have no effect on your return. I don't think Turbotax uses this instead it uses the amounts (in your case on lines 7 and 13)
Any royalties you receive will be treated as investment income unless your primary business involves this type of activity.
the $1306 is likely 6.25% of the LLC's total expenses. you would have to check with them for confirmation
