@HydroSci wrote:
First: If I report bus income to Line 1 - Ordinary Business, then it accumulates automatically in the capital accounts. However, because it was paid out to the partners (husband and wife - two partners) the capital accounts should not accumulate income.
Second: I also want to distribute the income unevenly, even though the profit percentages are 50% for the two of us.
The accounts will not "accumulate income" if you enter the business income proportionately distributed to each of the partners in Member Capital section for each partner. Click the Business Info tab and then Partner/Member Information.
[capital accounts (basically) = contributions + profit allocations - distributions]
You can make a special allocation election if you check "Yes" in the Makes special allocations section of the program (Business Info tab About Your Business - scroll down).
