@DawnC ,
I have a -$125,000 loss from a LLC K1, but $72,000 cash income from freelance/property management work I've done. No matter HOW I enter in the cash bank deposits, I'm still getting taxed the full amount. How do I get my K1 to pass through and offset the gains I had in cash? I want to be honest, but it kicks in a $10,200 tax bill if I report the deposits. Why doesn't the extreme loss of my 3 member LLC still show a loss for my TOTAL taxable income?
BTW- The loss in from box 1 on the K1. It's not in relation to rental properties. It's my husband and I doing a VERY SMALL car repair/dealership. The cash that I'd like to report is from our number one customer who ended up having us repair his 3 properties and all vehicles.
I've tried to use "bank statement" to add the amount and choose "freelance" work, but the K1 loss doens't counter balance that. I removed that entry and tried to enter in a "business" in our own name/address in order to create a schedule C, but that didn't offset the K1 loss either.
