I virtually submitted my business taxes, but now the turbotax person advising me with my personal taxes said my k1 that I created for my business is probably wrong.
We have a simple partnership and my husband and I bought out the 3rd person for $7400 December 16, 2022. The third partner was a limited partner for 2022.
My husband and I both have k1s that say
Part III line 1: 5710
Line 4a 4400
14 A 10110
Distributions 19A 5710
We paid out the partner 7400, but paid him out of the business bank account. I was going to take that out of the distributions by not paying myself that much, but then the sale doesn't show up correctly for the personal taxes.
I thought distributions meant the amount that you are paying yourself and not leaving in the business as capital.
