topic Where do I input income received by my business (sole proprietor LLC) from a K-1? It is not business income, but “other income” on schedule C. in Business & farm https://ttlc.intuit.com/community/business-taxes/discussion/where-do-i-input-income-received-by-my-business-sole-proprietor-llc-from-a-k-1-it-is-not-business/01/312610#M11304 Mon, 03 Jun 2019 18:48:26 GMT ammagri 2019-06-03T18:48:26Z Where do I input income received by my business (sole proprietor LLC) from a K-1? It is not business income, but “other income” on schedule C. https://ttlc.intuit.com/community/business-taxes/discussion/where-do-i-input-income-received-by-my-business-sole-proprietor-llc-from-a-k-1-it-is-not-business/01/312610#M11304 Mon, 03 Jun 2019 18:48:26 GMT https://ttlc.intuit.com/community/business-taxes/discussion/where-do-i-input-income-received-by-my-business-sole-proprietor-llc-from-a-k-1-it-is-not-business/01/312610#M11304 ammagri 2019-06-03T18:48:26Z Income reported to you on Schedule K-1, even if attribute... https://ttlc.intuit.com/community/business-taxes/discussion/income-reported-to-you-on-schedule-k-1-even-if-attribute/01/312618#M11305 <P>Income reported to you on Schedule K-1, even if attributed to your sole proprietorship or single-member LLC filing on Schedule C, is not brought into your income tax return through Schedule C. Rather, the K-1 is included in Part II of Schedule E Supplemental Income and Loss.</P><P>Even though your Schedule C business may be a "member" of the LLC, recall that for income tax purposes, the sole proprietorship or single-member LLC is a disregarded entity, and its income and expenses, profits, and losses, are inseparable from you, the individual taxpayer. Thus, its K-1 is your K-1.</P><P>This is logically the correct treatment of income. If the K-1 were reported through your Schedule C, the investment income from the K-1 would ultimately be treated as self-employment income, and subject to 15.3% self-employment tax, even though that income is not the fruit of your labor, but the fruit of your capital investment. <BR /></P> Mon, 03 Jun 2019 18:48:27 GMT https://ttlc.intuit.com/community/business-taxes/discussion/income-reported-to-you-on-schedule-k-1-even-if-attribute/01/312618#M11305 MichaelMc 2019-06-03T18:48:27Z Re: Where do I input income received by my business (sole proprietor LLC) from a K-1? It is not business income, but “other income” on schedule C. https://ttlc.intuit.com/community/business-taxes/discussion/re-where-do-i-input-income-received-by-my-business-sole-proprietor-llc-from-a-k-1-it-is-not-business/01/1241112#M41994 <P>I have 6 units of commercial office to rent. In 2019, I change the owner from myself to LLC. Am I still use schedule E to report my rental income or schedule C to report</P> Thu, 27 Feb 2020 05:13:48 GMT https://ttlc.intuit.com/community/business-taxes/discussion/re-where-do-i-input-income-received-by-my-business-sole-proprietor-llc-from-a-k-1-it-is-not-business/01/1241112#M41994 klouie 2020-02-27T05:13:48Z Re: Income reported to you on Schedule K-1, even if attribute... https://ttlc.intuit.com/community/business-taxes/discussion/re-income-reported-to-you-on-schedule-k-1-even-if-attribute/01/1682358#M55070 <P>I was liking the answer until the last sentence. &nbsp;What I have is payments, based on flat hourly charges, for conducting insurance audits. &nbsp;It is my pay for the work I do. &nbsp;It comes to me through an LLC, of which I am a limited partner with .0001% interest, that I had to join to get the work from this company. &nbsp;It is, I'm sure, designed to protect them from claims of "employee status". &nbsp;The K-1 says "self-employment income" on line 14-A, but also has the same amounts on 4A &amp; 4C. &nbsp;I'm a sol prop/independent contractor. &nbsp;I had set up all my expenses on schedule C as business expenses. &nbsp;If I enter the k-1 income on schedule E &nbsp;(personal income) then it leaves me a loss on sched C, which just seems wrong. &nbsp; Not sure what will happen if I shift expenses to Schedule E, if I can even do that. &nbsp;I don't think it will give me the easy option for choosing the home office deduction. &nbsp;Any ideas please?</P> Tue, 14 Jul 2020 23:15:28 GMT https://ttlc.intuit.com/community/business-taxes/discussion/re-income-reported-to-you-on-schedule-k-1-even-if-attribute/01/1682358#M55070 Beaufort 2020-07-14T23:15:28Z Re: Income reported to you on Schedule K-1, even if attribute... https://ttlc.intuit.com/community/business-taxes/discussion/re-income-reported-to-you-on-schedule-k-1-even-if-attribute/01/1682769#M55104 <BLOCKQUOTE><HR /><LI-USER uid="2533087"></LI-USER>&nbsp;wrote:<BR /><P>an LLC, of which I am a limited partner with .0001% interest,&nbsp;</P><P>&nbsp;</P><P>I'm a sol prop/independent contractor.&nbsp;</P><P>&nbsp;</P><HR /></BLOCKQUOTE><P>Unfortunately, no, you are not a Sole Proprietor/Independent Contractor.&nbsp; At least not for this business.&nbsp; You are a Partner.</P><P>&nbsp;</P><P>And even more unfortunately you connected yourself with the messed up business.&nbsp; They are claiming you are a "limited" partner, yet at the same time you are working for the company.&nbsp; Those are generally opposites.</P><P>&nbsp;</P><P>Does the agreement with the Partnership state that YOU must pay for all expense out of your own pocket?&nbsp;</P> Wed, 15 Jul 2020 00:26:46 GMT https://ttlc.intuit.com/community/business-taxes/discussion/re-income-reported-to-you-on-schedule-k-1-even-if-attribute/01/1682769#M55104 AmeliesUncle 2020-07-15T00:26:46Z Re: Where do I input income received by my business (sole proprietor LLC) from a K-1? It is not b... https://ttlc.intuit.com/community/business-taxes/discussion/re-where-do-i-input-income-received-by-my-business-sole-proprietor-llc-from-a-k-1-it-is-not-b/01/1682824#M55111 <P><SPAN style="font-size:14px"><SPAN style="font-family:Arial,Helvetica,sans-serif"><STRONG>Assuming you meet the requirements that you are required by the partnership agreement to pay all these expenses out of your pocket</STRONG>,&nbsp;on the <STRONG>Describe the Partnership</STRONG> screen immediately following the last "box" entry screen, select the "<STRONG>I am required to pay supplemental business expenses on behalf of this partnership/LLC for which I am not reimbursed</STRONG>".&nbsp;&nbsp;</SPAN></SPAN></P> <P>&nbsp;</P> <P><SPAN style="font-size:14px"><SPAN style="font-family:Arial,Helvetica,sans-serif">The series of screens that follow allow you to deduct your business expenses, including those for a home office.</SPAN></SPAN></P> <P>&nbsp;</P> <P><SPAN style="font-size:14px"><SPAN style="font-family:Arial,Helvetica,sans-serif"><LI-USER uid="2533087" login="Beaufort"></LI-USER></SPAN></SPAN></P> <P>&nbsp;</P> <P>&nbsp;</P> Wed, 15 Jul 2020 00:36:47 GMT https://ttlc.intuit.com/community/business-taxes/discussion/re-where-do-i-input-income-received-by-my-business-sole-proprietor-llc-from-a-k-1-it-is-not-b/01/1682824#M55111 DavidS127 2020-07-15T00:36:47Z Re: Where do I input income received by my business (sole proprietor LLC) from a K-1? It is not b... https://ttlc.intuit.com/community/business-taxes/discussion/re-where-do-i-input-income-received-by-my-business-sole-proprietor-llc-from-a-k-1-it-is-not-b/01/1682837#M55113 <P>I agree with David, BUT you will need to indicate you are a "general" partner, or else the program isn't really going to apply those expenses correctly.&nbsp; That is one reason why that Partnership situation is messed up.</P> Wed, 15 Jul 2020 00:39:00 GMT https://ttlc.intuit.com/community/business-taxes/discussion/re-where-do-i-input-income-received-by-my-business-sole-proprietor-llc-from-a-k-1-it-is-not-b/01/1682837#M55113 AmeliesUncle 2020-07-15T00:39:00Z Re: Where do I input income received by my business (sole proprietor LLC) from a K-1? It is not b... https://ttlc.intuit.com/community/business-taxes/discussion/re-where-do-i-input-income-received-by-my-business-sole-proprietor-llc-from-a-k-1-it-is-not-b/01/1683607#M55154 <P>Thanks DavidS127. &nbsp;I shall give that a try. &nbsp;I don't have to indicate that I am a general partner to get that option do I? &nbsp;(that was mentioned by another comment) &nbsp;K-1 identifies me as a "limited partner or LLC member", and further describes me in one box as a partnership, which I am not. &nbsp;Don't understand that at all.</P> Wed, 15 Jul 2020 01:49:00 GMT https://ttlc.intuit.com/community/business-taxes/discussion/re-where-do-i-input-income-received-by-my-business-sole-proprietor-llc-from-a-k-1-it-is-not-b/01/1683607#M55154 Beaufort 2020-07-15T01:49:00Z Re: Where do I input income received by my business (sole proprietor LLC) from a K-1? It is not b... https://ttlc.intuit.com/community/business-taxes/discussion/re-where-do-i-input-income-received-by-my-business-sole-proprietor-llc-from-a-k-1-it-is-not-b/01/1683641#M55157 <P>I don't know what would be the ramifications of indicating that I am a general partner, when the K-1 identifies me as a limited. &nbsp;I agree this is a messed up situation, all designed to protect folks who are essentially employees from claiming that they are employees.</P> Wed, 15 Jul 2020 01:52:14 GMT https://ttlc.intuit.com/community/business-taxes/discussion/re-where-do-i-input-income-received-by-my-business-sole-proprietor-llc-from-a-k-1-it-is-not-b/01/1683641#M55157 Beaufort 2020-07-15T01:52:14Z Re: Income reported to you on Schedule K-1, even if attribute... https://ttlc.intuit.com/community/business-taxes/discussion/re-income-reported-to-you-on-schedule-k-1-even-if-attribute/01/1686032#M55247 <P>Yes it does require me to pay all my own expenses.</P> Wed, 15 Jul 2020 12:13:31 GMT https://ttlc.intuit.com/community/business-taxes/discussion/re-income-reported-to-you-on-schedule-k-1-even-if-attribute/01/1686032#M55247 Beaufort 2020-07-15T12:13:31Z
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topic Where do I input income received by my business (sole proprietor LLC) from a K-1? It is not business income, but “other income” on schedule C. in Business & farm
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Where do I input income received by my business (sole proprietor LLC) from a K-1? It is not business income, but “other income” on schedule C.
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https://ttlc.intuit.com/community/business-taxes/discussion/where-do-i-input-income-received-by-my-business-sole-proprietor-llc-from-a-k-1-it-is-not-business/01/312610#M11304
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Income reported to you on Schedule K-1, even if attribute...
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<P>Income reported to you on Schedule K-1, even if attributed to your sole proprietorship or single-member LLC filing on Schedule C, is not brought into your income tax return through Schedule C. Rather, the K-1 is included in Part II of Schedule E Supplemental Income and Loss.</P><P>Even though your Schedule C business may be a "member" of the LLC, recall that for income tax purposes, the sole proprietorship or single-member LLC is a disregarded entity, and its income and expenses, profits, and losses, are inseparable from you, the individual taxpayer. Thus, its K-1 is your K-1.</P><P>This is logically the correct treatment of income. If the K-1 were reported through your Schedule C, the investment income from the K-1 would ultimately be treated as self-employment income, and subject to 15.3% self-employment tax, even though that income is not the fruit of your labor, but the fruit of your capital investment. <BR /></P>
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Re: Where do I input income received by my business (sole proprietor LLC) from a K-1? It is not business income, but “other income” on schedule C.
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https://ttlc.intuit.com/community/business-taxes/discussion/re-where-do-i-input-income-received-by-my-business-sole-proprietor-llc-from-a-k-1-it-is-not-business/01/1241112#M41994
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<P>I have 6 units of commercial office to rent. In 2019, I change the owner from myself to LLC. Am I still use schedule E to report my rental income or schedule C to report</P>
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<pubDate>Thu, 27 Feb 2020 05:13:48 GMT</pubDate>
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Re: Income reported to you on Schedule K-1, even if attribute...
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<P>I was liking the answer until the last sentence. &nbsp;What I have is payments, based on flat hourly charges, for conducting insurance audits. &nbsp;It is my pay for the work I do. &nbsp;It comes to me through an LLC, of which I am a limited partner with .0001% interest, that I had to join to get the work from this company. &nbsp;It is, I'm sure, designed to protect them from claims of "employee status". &nbsp;The K-1 says "self-employment income" on line 14-A, but also has the same amounts on 4A &amp; 4C. &nbsp;I'm a sol prop/independent contractor. &nbsp;I had set up all my expenses on schedule C as business expenses. &nbsp;If I enter the k-1 income on schedule E &nbsp;(personal income) then it leaves me a loss on sched C, which just seems wrong. &nbsp; Not sure what will happen if I shift expenses to Schedule E, if I can even do that. &nbsp;I don't think it will give me the easy option for choosing the home office deduction. &nbsp;Any ideas please?</P>
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Re: Income reported to you on Schedule K-1, even if attribute...
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<BLOCKQUOTE><HR /><LI-USER uid="2533087"></LI-USER>&nbsp;wrote:<BR /><P>an LLC, of which I am a limited partner with .0001% interest,&nbsp;</P><P>&nbsp;</P><P>I'm a sol prop/independent contractor.&nbsp;</P><P>&nbsp;</P><HR /></BLOCKQUOTE><P>Unfortunately, no, you are not a Sole Proprietor/Independent Contractor.&nbsp; At least not for this business.&nbsp; You are a Partner.</P><P>&nbsp;</P><P>And even more unfortunately you connected yourself with the messed up business.&nbsp; They are claiming you are a "limited" partner, yet at the same time you are working for the company.&nbsp; Those are generally opposites.</P><P>&nbsp;</P><P>Does the agreement with the Partnership state that YOU must pay for all expense out of your own pocket?&nbsp;</P>
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Re: Where do I input income received by my business (sole proprietor LLC) from a K-1? It is not b...
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https://ttlc.intuit.com/community/business-taxes/discussion/re-where-do-i-input-income-received-by-my-business-sole-proprietor-llc-from-a-k-1-it-is-not-b/01/1682824#M55111
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<P><SPAN style="font-size:14px"><SPAN style="font-family:Arial,Helvetica,sans-serif"><STRONG>Assuming you meet the requirements that you are required by the partnership agreement to pay all these expenses out of your pocket</STRONG>,&nbsp;on the <STRONG>Describe the Partnership</STRONG> screen immediately following the last "box" entry screen, select the "<STRONG>I am required to pay supplemental business expenses on behalf of this partnership/LLC for which I am not reimbursed</STRONG>".&nbsp;&nbsp;</SPAN></SPAN></P> <P>&nbsp;</P> <P><SPAN style="font-size:14px"><SPAN style="font-family:Arial,Helvetica,sans-serif">The series of screens that follow allow you to deduct your business expenses, including those for a home office.</SPAN></SPAN></P> <P>&nbsp;</P> <P><SPAN style="font-size:14px"><SPAN style="font-family:Arial,Helvetica,sans-serif"><LI-USER uid="2533087" login="Beaufort"></LI-USER></SPAN></SPAN></P> <P>&nbsp;</P> <P>&nbsp;</P>
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Re: Where do I input income received by my business (sole proprietor LLC) from a K-1? It is not b...
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<P>I agree with David, BUT you will need to indicate you are a "general" partner, or else the program isn't really going to apply those expenses correctly.&nbsp; That is one reason why that Partnership situation is messed up.</P>
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<pubDate>Wed, 15 Jul 2020 00:39:00 GMT</pubDate>
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<dc:date>2020-07-15T00:39:00Z</dc:date>
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Re: Where do I input income received by my business (sole proprietor LLC) from a K-1? It is not b...
</title>
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https://ttlc.intuit.com/community/business-taxes/discussion/re-where-do-i-input-income-received-by-my-business-sole-proprietor-llc-from-a-k-1-it-is-not-b/01/1683607#M55154
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<P>Thanks DavidS127. &nbsp;I shall give that a try. &nbsp;I don't have to indicate that I am a general partner to get that option do I? &nbsp;(that was mentioned by another comment) &nbsp;K-1 identifies me as a "limited partner or LLC member", and further describes me in one box as a partnership, which I am not. &nbsp;Don't understand that at all.</P>
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Re: Where do I input income received by my business (sole proprietor LLC) from a K-1? It is not b...
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<P>I don't know what would be the ramifications of indicating that I am a general partner, when the K-1 identifies me as a limited. &nbsp;I agree this is a messed up situation, all designed to protect folks who are essentially employees from claiming that they are employees.</P>
</description>
<pubDate>Wed, 15 Jul 2020 01:52:14 GMT</pubDate>
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<dc:creator>Beaufort</dc:creator>
<dc:date>2020-07-15T01:52:14Z</dc:date>
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Re: Income reported to you on Schedule K-1, even if attribute...
</title>
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<P>Yes it does require me to pay all my own expenses.</P>
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<pubDate>Wed, 15 Jul 2020 12:13:31 GMT</pubDate>
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<dc:creator>Beaufort</dc:creator>
<dc:date>2020-07-15T12:13:31Z</dc:date>
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