I own an LLC which does nothing but own 50% of a partnership. My partner and I agreed on our operating agreement that I would take all profits in year 1 as guaranteed distributions for running the day to day operations of the business. I have my K1 reflecting the guaranteed distributions but I do not know how to calculate the taxes I owe on them. Also if I had expenses that I incurred can I create a Schedule C for my LLC which owns 50% of the partnership and claim them there?
