I have a 2 person partnership that was started late last year.
My partner paid out of his checking account 2076$ for business expenses.
I paid 1465$.
$600 of this went into a business checking and savings. The remainder paid for business expenses
The business made $4500 for the year.
We had $3542 in deductions (fees, insurance, software, etc. It is a coincidence that its the same number as our investment).
Our business checking + savings had $903 at the end of year.
I paid myself $2,779.
My partner paid himself $818
$313 went into business checking.
When I put all this into turbotax, the balance sheet does. not. add. up. I'm clearly doing something fundamentally wrong but I can not for the life of me figure it out. I need to make sure that my partner has a loss on his K-1 while I made money.
I tried showing the 3597$ paid to us in the deductions section. Later I'd have we gave a loan of 3541 to the business. Didn't work.
Tried having my partner paid a negative number (his investment minus his payment), myself a positive number, still didn't work.
I'm at a loss. How are you supposed to account for this loss so it shows up correctly??
