That is a great question.
To start, the first thing I would do is submit any direct costs associated with that business for reimbursement (if applicable) to get those costs a company expense.
Otherwise, you can report the additional cost you incur as a direct business expense within TurboTax when you will be prompted to answer that exact question of incurring cost. Any amount you report will reduce the associated income for that Schedule K-1.
If you are considered an OWNER, that would be the only reason to receive Schedule K-1 and does not require you to form an LLC.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
