We have an LLC with two members through which we invested in another LLC. The LLC we invested in gave us K1, in which we have line 2 with a loss and line 19 with code A and distribution amount, and 20 with z statement.
We have entered the details from the K1 we received along with some business expenses. When Turbo Tax generated the K1s for the partners, we are seeing a negative amount in Line1 and Line 14(Code A) for General Partner. This amount is exactly half of the business expenses. But the LP has nothing in Line1 and 14. Are business expenses considered self-employment loss in K1? Is it correct?
Neither distributions nor the rental income loss is self-employment earnings. Why are we seeing losses in line 14?
We have a similar situation in 2021 along with business expenses, and k1s were generated by different software. That K1 has a negative amount in line 1 but nothing in line 14 for both GP and LP. Why we are seeing the -ve amount in line 14 for GP in the 2022 K1 generated by Turbotax business?
