dsoile
Employee Tax Expert

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Hello ashughes 

 

You will only have one K-1 to report on your 1040, so you do not need to split your K-1 to multiple ones. The S-Corp has ownership stake at Company B, thus the S-Corp owns Company B. This means the S-Corp received X amounts in royalties from Company B activity, which in turn is passed through to you, since you have ownership stake in the S-Corp.