Thanks for replying, I truly appreciate it! I'll reread it in the morning as I found it helpful, but I'm not 100% sure it clarifies the current issue?
I loaned $5k to the business that shows up on a 1099k because it was through a personal credit card.
Wouldn't that mean it appears as a $5k sale that comes to my personal return (from the K1 issued) as a $5k profit if I do nothing? I'm not sure why the overall income being higher than the 1099k matters. :(
I think I'm supposed to at least classify the $5k it paid back as some kind of expense, as then it washes out the 1099k sale.
That all sounds great, and maybe I'm just overcomplicating things due to anxiety(!), but it doesn't seem that simple because the $5k loaned could have been a "non tax return event" of paying off business credit cards, or it could have been a "tax event" like if I bought $5k in shipping postage with it.. now I have a $5k postage expense on my return as well. (My brain hurts, maybe that doesn't matter but seems like it would make a difference).
