Here's my scenario:
My brother and I both own an LLC (50% each). However, he did not work or get paid by the LLC in the year 2023. Therefore, when filling out the Form 1065 and Schedule K-1, his portion of the profit was 0%, and my portion was 100%. Additionally, our LLC paid me as contractor; therefore, I completed a 1099-NEC for myself.
For illustrative purposes, let's assume the LLC did $50k in income. I paid myself $25k as a contractor (1099-NEC), so the LLC made a $25k profit that I have already submitted to the government in the form of a 1065. We're neglecting costs and other deductions at the moment.
I'm confused as to how to enter this information into TurboTax. TurboTax is asking me if I own a business. Yes, I own a LLC but only 50% of it. Additionally, it's asking if I issued a 1099-NEC. Well, I did not issue a 1099-NEC for my CONTRACT work; the LLC issued me a 1099-NEC. I'm just a little confused as to how to proceed and could use some feedback. Thank you.
