Re: Income reported to you on Schedule K-1, even i...
Level 1

Business & farm

I was liking the answer until the last sentence.  What I have is payments, based on flat hourly charges, for conducting insurance audits.  It is my pay for the work I do.  It comes to me through an LLC, of which I am a limited partner with .0001% interest, that I had to join to get the work from this company.  It is, I'm sure, designed to protect them from claims of "employee status".  The K-1 says "self-employment income" on line 14-A, but also has the same amounts on 4A & 4C.  I'm a sol prop/independent contractor.  I had set up all my expenses on schedule C as business expenses.  If I enter the k-1 income on schedule E  (personal income) then it leaves me a loss on sched C, which just seems wrong.   Not sure what will happen if I shift expenses to Schedule E, if I can even do that.  I don't think it will give me the easy option for choosing the home office deduction.  Any ideas please?

Privacy Settings