topic Where do I enter money that was paid to LLC members from an Investment account? in Get your taxes done using TurboTax

Where do I enter money that was paid to LLC members from an Investment account?

xxxxxxxxxxxxxx — Mon, 23 Feb 2026 09:54:36 GMT

Two members of an LLC took distributions from the LLC investment account. Where do I enter this information in TT Business? Is it "Employee compensation", or maybe a "guaranteed payment"?

Re: Where do I enter money that was paid to LLC members from an Investment account?

Anonymous_ — Sat, 28 Jan 2023 17:42:14 GMT

It is simply a distribution that can be entered in the Partner/Member Information section.

Re: Where do I enter money that was paid to LLC members from an Investment account?

Mike9241 — Sat, 28 Jan 2023 17:56:57 GMT

members are not employees. the issue with guaranteed payments is they may be subject to self-employment tax. so unless it was intended that the distributions are compensation for services (guaranteed payments that are taxable and subject to SE tax) or a return on invested capital (also guaranteed payments that are taxable but not subject to SE tax) the correct category is distributions. which generally aren't taxable unless they reduce the member's basis below zero.