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?
