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Level 3
posted Jun 30, 2020 2:18:43 PM

Can I delete the Schedule k1, which came from last year, if I don't want to use it this year for my LLC?

I have one member LLC in CA, and no income from it. I created last year a schedule k1 for myself. This year I see it's easier just to report on Schedule C my lost. Can I just delete the Schedule k1, which came from last year from my TurboTax file without penalty, and keep going with Schedule C?

0 3 569
3 Replies
Level 15
Jun 30, 2020 2:22:09 PM

What kind of LLC do you have?  You might need to amend 2018 and take off the K-1 and fill out schedule C for your LLC.  Unless you have a Single Member LLC and selected to be an S corp.  Then you have to file a 1120 S business return, then you will get a K-1 or W2 from the 1120 S.  That is a whole other situation and you will need help.

 

If you have a SMLLC that is not an S corp it is a disregarded entity and you file it on Schedule C.  

 

Try deleting it this way. Go to the K-1 interview section here
Federal on the left
Wages and Income
Then scroll way down to Business Items (or S-Corps, Partnerships, Trusts)
Schedule K-1 - Click the Start or Revisit button

If the first screen says "Do you want to review Schedule K-1?". You have to answer yes and then click Update by the Schedule K-1 type (LLC, S corp, trust). The next screen is the Summary screen listing all of the K-1 entered for that type of entity. You can review, edit or delete it there.

 

Level 15
Jun 30, 2020 5:16:43 PM

Sounds like you may need to amend your 2018 tax return. A single member LLC is reported on SCH C as a physical part of your personal 1040 tax return. But first:

Back in 2018 or before did you file IRS Form 2553 to treat your single member LLC "like an S-Corp"? Or did you file IRS Form 8832 to treat your single member LLC "like a C-Corp"?  If you did either, then you flat out can not report your business income/expenses on SCH C. You are required to report all business income/expenses on 1120 for a C-Corp or 1120-S for an S-Corp. Then (and only then) would the C-Corp or S-Corp issue you any kind of tax reporting document.

 

 

Level 3
Jul 3, 2020 12:19:39 PM

No, I didn't  use Form 2553