We have a real estate agency. We made X amount in gross sales (2 partners and 4 reps). If I enter that amount into form 1065, income, it is showing up as partner capital and requires me to balance beginning year with end of year. This is crazy. this isn't capital. We only started this business in December of 2016, so 2016 tax return was minimal. I know this is coming up because gross sales were over 250,000. Should I just be using what we paid the sales reps and not take the fees/etc. under deductions? This is very confusing.
