I have a K-1 with Ordinary Business Income (line 1), Dividends (line 16 D), and Section 179 Deduction (line 11). In the past the Ordinary Business Income was the same as the Dividends, so it looked like I was taxed on the Dividends. This year the Ordinary Business Income is more than the Dividend distribution and I see I am being taxed on the Ordinary Business Income amount. I did not receive this money, it is still invested. Is it correct that I am not taxed on the Dividends but on the Ordinary Business Income? Next question, it appears TT is not allowing the Section 179 Deduction because I have no business income which is on the K-1 and I am being taxed on it.
I am literally searched everywhere for an explanation on this. Hopefully someone on this forum can shed some light on this - taxes should not be this hard.
