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Business & farm
NO.... your Sch C business cannot be a partner and cannot get a K-1 in it's name.
Once you became a partner the Sch C business closed and all the partnership expenses should be paid thru the partnership .... you CANNOT have the income on the Sch E and the expenses on the Sch C ... you are not allowed to mix the 2 up like that.
You and your partners really need to talk to a tax professional/CPA to get things set up properly and get educated on the entity you started. Making big mistakes like that will cost you more down the road in penalties & interest then a consultation fee is right now.
Once you became a partner the Sch C business closed and all the partnership expenses should be paid thru the partnership .... you CANNOT have the income on the Sch E and the expenses on the Sch C ... you are not allowed to mix the 2 up like that.
You and your partners really need to talk to a tax professional/CPA to get things set up properly and get educated on the entity you started. Making big mistakes like that will cost you more down the road in penalties & interest then a consultation fee is right now.
‎June 6, 2019
7:29 AM