topic @sharrobins2&nbsp;&nbsp;&nbsp;So Box 1 of the K-1 should reflect the pro... in Business & farm https://ttlc.intuit.com/community/business-taxes/discussion/sharrobins2-so-box-1-of-the-k-1-should-reflect-the-pro/01/596535#M23395 <A href="https://ttlc.intuit.com/users/e248aa3c-2e7e-46a2-b71c-7df0d57f5acf" target="_blank">@sharrobins2</A>&nbsp;&nbsp;&nbsp;So Box 1 of the K-1 should reflect the profit of the corporation AFTER your wages were subtracted. Thu, 06 Jun 2019 05:20:31 GMT TaxGuyBill 2019-06-06T05:20:31Z Do I have to enter K1 and W2 if from the same LLC partnership/business? There is an overlap in income on W2 and K1 and TT is seeing them as two different income sources https://ttlc.intuit.com/community/business-taxes/discussion/do-i-have-to-enter-k1-and-w2-if-from-the-same-llc-partnership-business-there-is-an-overlap-in-income/01/596489#M23387 Thu, 06 Jun 2019 05:20:21 GMT https://ttlc.intuit.com/community/business-taxes/discussion/do-i-have-to-enter-k1-and-w2-if-from-the-same-llc-partnership-business-there-is-an-overlap-in-income/01/596489#M23387 jenledbet 2019-06-06T05:20:21Z There shouldn't be any overlap in income between the W-2... https://ttlc.intuit.com/community/business-taxes/discussion/there-shouldn-t-be-any-overlap-in-income-between-the-w-2/01/596496#M23388 <P>There shouldn't be any overlap in income between the W-2 and the K-1. &nbsp;The W-2 shows earnings you received by paycheck as an employee, which should have had payroll taxes deducted and sent in by the company. &nbsp;</P><P>The K-1 shows your share of the partnership's income or loss that is yours because you are a partner. &nbsp;You may or may not have received some of this as a cash distribution, but it is still income to you.<BR /></P><P>These are two distinctly different types of income, and need to be shown as different income sources.</P> Thu, 06 Jun 2019 05:20:23 GMT https://ttlc.intuit.com/community/business-taxes/discussion/there-shouldn-t-be-any-overlap-in-income-between-the-w-2/01/596496#M23388 stravis 2019-06-06T05:20:23Z I did receive a k-1 and a w-2 that both report the exact... https://ttlc.intuit.com/community/business-taxes/discussion/i-did-receive-a-k-1-and-a-w-2-that-both-report-the-exact/01/596502#M23389 I did receive a k-1 and a w-2 that both report the exact amount for the same income... did my tax guy do something wrong? I have a tax guy that does the business s-corp tax and then I was going to just do my personal through turbo tax. Do i just ignore the k-1 and use the w-2? Thu, 06 Jun 2019 05:20:24 GMT https://ttlc.intuit.com/community/business-taxes/discussion/i-did-receive-a-k-1-and-a-w-2-that-both-report-the-exact/01/596502#M23389 mattcrossette 2019-06-06T05:20:24Z No, don't ignore anything.  Ask your tax guy about it.  F... https://ttlc.intuit.com/community/business-taxes/discussion/no-don-t-ignore-anything-ask-your-tax-guy-about-it-f/01/596509#M23390 No, don't ignore anything.&nbsp;&nbsp;Ask your tax guy about it.&nbsp;&nbsp;From your description, yes, it seems wrong.&nbsp;&nbsp;Look at the corporate tax return (Form 1120-S), and check if it shows your wages on Line 7 (check Line 8 too, in case it was misplaced there). Thu, 06 Jun 2019 05:20:26 GMT https://ttlc.intuit.com/community/business-taxes/discussion/no-don-t-ignore-anything-ask-your-tax-guy-about-it-f/01/596509#M23390 TaxGuyBill 2019-06-06T05:20:26Z I am curious about what happened here because I still hav... https://ttlc.intuit.com/community/business-taxes/discussion/i-am-curious-about-what-happened-here-because-i-still-hav/01/596519#M23391 I am curious about what happened here because I still have the same question.&nbsp;&nbsp;How are K1 and W2 distinctly different types of income and what did the 'tax guy' say about them being exactly the same?&nbsp;&nbsp;Was that an error?&nbsp;&nbsp;Here is my watered down scenario- 2 person business- one owner/one co-owner, set up as an S Corp, total sales $20000, total expense $13000, BOTH employees got paid $10000 in W2, owner has 98% interest in business while co-owner has 2%.&nbsp;&nbsp;What am I missing? Thu, 06 Jun 2019 05:20:27 GMT https://ttlc.intuit.com/community/business-taxes/discussion/i-am-curious-about-what-happened-here-because-i-still-hav/01/596519#M23391 sharrobins2 2019-06-06T05:20:27Z This is happening to me too. My k1 is showing all income... https://ttlc.intuit.com/community/business-taxes/discussion/this-is-happening-to-me-too-my-k1-is-showing-all-income/01/596520#M23392 This is happening to me too. My k1 is showing all income recieved but some of it is from w2. Thu, 06 Jun 2019 05:20:28 GMT https://ttlc.intuit.com/community/business-taxes/discussion/this-is-happening-to-me-too-my-k1-is-showing-all-income/01/596520#M23392 stebecas 2019-06-06T05:20:28Z @stebecas   You can not receive a W-2 when you are Partne... https://ttlc.intuit.com/community/business-taxes/discussion/stebecas-you-can-not-receive-a-w-2-when-you-are-partne/01/596521#M23393 <A href="https://ttlc.intuit.com/users/47982187-11bb-4447-856a-9fd339577822" target="_blank">@stebecas</A>&nbsp;&nbsp;&nbsp;You can not receive a W-2 when you are Partner.&nbsp;&nbsp;Was that the case, or were you an employee for part of the year, then you became a Partner? Thu, 06 Jun 2019 05:20:28 GMT https://ttlc.intuit.com/community/business-taxes/discussion/stebecas-you-can-not-receive-a-w-2-when-you-are-partne/01/596521#M23393 TaxGuyBill 2019-06-06T05:20:28Z Hi, the business is setup as an S Corp- me as President (... https://ttlc.intuit.com/community/business-taxes/discussion/hi-the-business-is-setup-as-an-s-corp-me-as-president/01/596529#M23394 Hi, the business is setup as an S Corp- me as President (98% shares) and my daughter as VP (2% shares).&nbsp;&nbsp;We pay ourselves via W2.&nbsp;&nbsp;Maybe the K1 doesn't even come into 'play' with us?&nbsp;&nbsp; Thu, 06 Jun 2019 05:20:30 GMT https://ttlc.intuit.com/community/business-taxes/discussion/hi-the-business-is-setup-as-an-s-corp-me-as-president/01/596529#M23394 sharrobins2 2019-06-06T05:20:30Z @sharrobins2   So Box 1 of the K-1 should reflect the pro... https://ttlc.intuit.com/community/business-taxes/discussion/sharrobins2-so-box-1-of-the-k-1-should-reflect-the-pro/01/596535#M23395 <A href="https://ttlc.intuit.com/users/e248aa3c-2e7e-46a2-b71c-7df0d57f5acf" target="_blank">@sharrobins2</A>&nbsp;&nbsp;&nbsp;So Box 1 of the K-1 should reflect the profit of the corporation AFTER your wages were subtracted. Thu, 06 Jun 2019 05:20:31 GMT https://ttlc.intuit.com/community/business-taxes/discussion/sharrobins2-so-box-1-of-the-k-1-should-reflect-the-pro/01/596535#M23395 TaxGuyBill 2019-06-06T05:20:31Z If my expenses were more than what we took in, then it wo... https://ttlc.intuit.com/community/business-taxes/discussion/if-my-expenses-were-more-than-what-we-took-in-then-it-wo/01/596540#M23396 If my expenses were more than what we took in, then it would be a loss.&nbsp;&nbsp;We are in 1st year of business so expenses were high for startup.&nbsp;&nbsp;Correct? Thu, 06 Jun 2019 05:20:33 GMT https://ttlc.intuit.com/community/business-taxes/discussion/if-my-expenses-were-more-than-what-we-took-in-then-it-wo/01/596540#M23396 sharrobins2 2019-06-06T05:20:33Z Yes, Box 1 of your K-1 would show a loss.  If you have "B... https://ttlc.intuit.com/community/business-taxes/discussion/yes-box-1-of-your-k-1-would-show-a-loss-if-you-have-b/01/596550#M23398 Yes, Box 1 of your K-1 would show a loss.&nbsp;&nbsp;If you have "Basis" in the corporation, that loss would be deductible against other income on your personal tax return. Thu, 06 Jun 2019 05:20:34 GMT https://ttlc.intuit.com/community/business-taxes/discussion/yes-box-1-of-your-k-1-would-show-a-loss-if-you-have-b/01/596550#M23398 TaxGuyBill 2019-06-06T05:20:34Z Thanks "TaxGuyBill", you have been very helpful.  I have... https://ttlc.intuit.com/community/business-taxes/discussion/thanks-taxguybill-you-have-been-very-helpful-i-have/01/596554#M23399 Thanks "TaxGuyBill", you have been very helpful.&nbsp;&nbsp;I have an accountant who will do all of this for me but I like to be well informed before the process begins.&nbsp;&nbsp;Have a good day! Thu, 06 Jun 2019 05:20:35 GMT https://ttlc.intuit.com/community/business-taxes/discussion/thanks-taxguybill-you-have-been-very-helpful-i-have/01/596554#M23399 sharrobins2 2019-06-06T05:20:35Z Re: Yes, Box 1 of your K-1 would show a loss. If you have "B... https://ttlc.intuit.com/community/business-taxes/discussion/re-yes-box-1-of-your-k-1-would-show-a-loss-if-you-have-b/01/1738883#M57119 <P>Hi TaxGuyBill,</P><P>I am partnering with an existing business owner to acquire ownership through profit sharing contributions.&nbsp; The idea is to use profit sharing to purchase shares, up to and including 20%.&nbsp; The agreement is drafted for 2 years of automatic share purchases from the eligible profit sharing.&nbsp; My question is how can I use 100% of the profit sharing to purchase the shares pre-taxed, at least until all shares are purchase and the excess be taxed as income.&nbsp; Below are the brief details to the agreement.</P><P>&nbsp;</P><P>Goal: 2 year plan to gain 20% ownership by the end of year 2.&nbsp; Profit sharing will be automatically rolled into purchasing up to 200,000 shares of a 1,000,000 share company at $1.30 per share.</P><P>&nbsp;</P><P>Example: year 1 yields $130K in eligible profit sharing, to purchase 100,00 shares; 10%.&nbsp; Year 2 yields $65K in profit sharing and $65K in equity returns; 100% vested.</P><P>&nbsp;</P><P>Year 1: Profit sharing will be automatically rolled into purchasing.&nbsp; Remaining share percentage (10%) will be the eligible profit sharing for year 2.&nbsp;</P><P>&nbsp;</P><P>Year 2: Eligible profit sharing (10% per example) and equity returns from shares purchased in Y1 are automatically rolled into purchasing the remaining shares (10%) .&nbsp; Any excess returns are to be received and taxed as income.</P><P>&nbsp;</P><P>Please tell me if there is a tax differed strategy to do this without the profit shares or equity returns being taxed before purchasing the shares.&nbsp; Otherwise, I will need to pay out of pocket for any remaining shares.&nbsp; As you can imagine, I would have to write a very big check if taxed before purchasing shares.&nbsp; Any and all advice is much appreciated.</P><P>&nbsp;</P> Fri, 30 Oct 2020 23:34:40 GMT https://ttlc.intuit.com/community/business-taxes/discussion/re-yes-box-1-of-your-k-1-would-show-a-loss-if-you-have-b/01/1738883#M57119 Hautehead 2020-10-30T23:34:40Z Re: Yes, Box 1 of your K-1 would show a loss. If you have "B... https://ttlc.intuit.com/community/business-taxes/discussion/re-yes-box-1-of-your-k-1-would-show-a-loss-if-you-have-b/01/1739344#M57138 <BLOCKQUOTE><HR /><LI-USER uid="2729135"></LI-USER>&nbsp;wrote:<P>Goal: 2 year plan to gain 20% ownership by the end of year 2.&nbsp; Profit sharing will be automatically rolled into purchasing up to 200,000 shares of a 1,000,000 share company at $1.30 per share.</P><P>&nbsp;</P><HR /></BLOCKQUOTE><P>&nbsp;</P><P>Go to a good tax professional.&nbsp;&nbsp;</P><P>&nbsp;</P><P>It is crazy to be planning something complex involving hundreds of thousands of dollars without sitting down with a good tax professional that look at all of the details.</P><P>&nbsp;</P><P>And assuming you mean retirement accounts when you are referring to "pre-tax" and "profit sharing", that further complicates things, including the fact there are limitations for contributing to retirement accounts.</P><P>&nbsp;</P><P>Again, go to a tax good professional.</P> Sun, 01 Nov 2020 21:49:11 GMT https://ttlc.intuit.com/community/business-taxes/discussion/re-yes-box-1-of-your-k-1-would-show-a-loss-if-you-have-b/01/1739344#M57138 AmeliesUncle 2020-11-01T21:49:11Z Re: Yes, Box 1 of your K-1 would show a loss. If you have "B... https://ttlc.intuit.com/community/business-taxes/discussion/re-yes-box-1-of-your-k-1-would-show-a-loss-if-you-have-b/01/1739353#M57139 <P>another wrinkle is that a retirement a/c owning an interest in a profit-making business may have to file 990-T to pay tax on unrelated business income.&nbsp; another issue, how do you get the money out if you need it. under</P><P>59-1/2, there's a penalty.&nbsp; &nbsp;company goes belly up - no deduction - you suffer the loss thru a reduced value of the profit-sharing a/c.&nbsp; &nbsp; &nbsp;see a pro&nbsp;</P> Sun, 01 Nov 2020 22:20:26 GMT https://ttlc.intuit.com/community/business-taxes/discussion/re-yes-box-1-of-your-k-1-would-show-a-loss-if-you-have-b/01/1739353#M57139 Anonymous 2020-11-01T22:20:26Z
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topic @sharrobins2&nbsp;&nbsp;&nbsp;So Box 1 of the K-1 should reflect the pro... in Business & farm
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https://ttlc.intuit.com/community/business-taxes/discussion/sharrobins2-so-box-1-of-the-k-1-should-reflect-the-pro/01/596535#M23395
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<A href="https://ttlc.intuit.com/users/e248aa3c-2e7e-46a2-b71c-7df0d57f5acf" target="_blank">@sharrobins2</A>&nbsp;&nbsp;&nbsp;So Box 1 of the K-1 should reflect the profit of the corporation AFTER your wages were subtracted.
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<pubDate>Thu, 06 Jun 2019 05:20:31 GMT</pubDate>
<dc:creator>TaxGuyBill</dc:creator>
<dc:date>2019-06-06T05:20:31Z</dc:date>
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Do I have to enter K1 and W2 if from the same LLC partnership/business? There is an overlap in income on W2 and K1 and TT is seeing them as two different income sources
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https://ttlc.intuit.com/community/business-taxes/discussion/do-i-have-to-enter-k1-and-w2-if-from-the-same-llc-partnership-business-there-is-an-overlap-in-income/01/596489#M23387
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<pubDate>Thu, 06 Jun 2019 05:20:21 GMT</pubDate>
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<dc:date>2019-06-06T05:20:21Z</dc:date>
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There shouldn't be any overlap in income between the W-2...
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https://ttlc.intuit.com/community/business-taxes/discussion/there-shouldn-t-be-any-overlap-in-income-between-the-w-2/01/596496#M23388
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<P>There shouldn't be any overlap in income between the W-2 and the K-1. &nbsp;The W-2 shows earnings you received by paycheck as an employee, which should have had payroll taxes deducted and sent in by the company. &nbsp;</P><P>The K-1 shows your share of the partnership's income or loss that is yours because you are a partner. &nbsp;You may or may not have received some of this as a cash distribution, but it is still income to you.<BR /></P><P>These are two distinctly different types of income, and need to be shown as different income sources.</P>
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<pubDate>Thu, 06 Jun 2019 05:20:23 GMT</pubDate>
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<dc:creator>stravis</dc:creator>
<dc:date>2019-06-06T05:20:23Z</dc:date>
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I did receive a k-1 and a w-2 that both report the exact...
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https://ttlc.intuit.com/community/business-taxes/discussion/i-did-receive-a-k-1-and-a-w-2-that-both-report-the-exact/01/596502#M23389
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I did receive a k-1 and a w-2 that both report the exact amount for the same income... did my tax guy do something wrong? I have a tax guy that does the business s-corp tax and then I was going to just do my personal through turbo tax. Do i just ignore the k-1 and use the w-2?
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<pubDate>Thu, 06 Jun 2019 05:20:24 GMT</pubDate>
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https://ttlc.intuit.com/community/business-taxes/discussion/i-did-receive-a-k-1-and-a-w-2-that-both-report-the-exact/01/596502#M23389
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<dc:creator>mattcrossette</dc:creator>
<dc:date>2019-06-06T05:20:24Z</dc:date>
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No, don't ignore anything.  Ask your tax guy about it.  F...
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https://ttlc.intuit.com/community/business-taxes/discussion/no-don-t-ignore-anything-ask-your-tax-guy-about-it-f/01/596509#M23390
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No, don't ignore anything.&nbsp;&nbsp;Ask your tax guy about it.&nbsp;&nbsp;From your description, yes, it seems wrong.&nbsp;&nbsp;Look at the corporate tax return (Form 1120-S), and check if it shows your wages on Line 7 (check Line 8 too, in case it was misplaced there).
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<pubDate>Thu, 06 Jun 2019 05:20:26 GMT</pubDate>
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https://ttlc.intuit.com/community/business-taxes/discussion/no-don-t-ignore-anything-ask-your-tax-guy-about-it-f/01/596509#M23390
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<dc:creator>TaxGuyBill</dc:creator>
<dc:date>2019-06-06T05:20:26Z</dc:date>
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I am curious about what happened here because I still hav...
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https://ttlc.intuit.com/community/business-taxes/discussion/i-am-curious-about-what-happened-here-because-i-still-hav/01/596519#M23391
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I am curious about what happened here because I still have the same question.&nbsp;&nbsp;How are K1 and W2 distinctly different types of income and what did the 'tax guy' say about them being exactly the same?&nbsp;&nbsp;Was that an error?&nbsp;&nbsp;Here is my watered down scenario- 2 person business- one owner/one co-owner, set up as an S Corp, total sales $20000, total expense $13000, BOTH employees got paid $10000 in W2, owner has 98% interest in business while co-owner has 2%.&nbsp;&nbsp;What am I missing?
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<pubDate>Thu, 06 Jun 2019 05:20:27 GMT</pubDate>
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<dc:creator>sharrobins2</dc:creator>
<dc:date>2019-06-06T05:20:27Z</dc:date>
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<title>
This is happening to me too. My k1 is showing all income...
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https://ttlc.intuit.com/community/business-taxes/discussion/this-is-happening-to-me-too-my-k1-is-showing-all-income/01/596520#M23392
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<description>
This is happening to me too. My k1 is showing all income recieved but some of it is from w2.
</description>
<pubDate>Thu, 06 Jun 2019 05:20:28 GMT</pubDate>
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https://ttlc.intuit.com/community/business-taxes/discussion/this-is-happening-to-me-too-my-k1-is-showing-all-income/01/596520#M23392
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<dc:creator>stebecas</dc:creator>
<dc:date>2019-06-06T05:20:28Z</dc:date>
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@stebecas   You can not receive a W-2 when you are Partne...
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https://ttlc.intuit.com/community/business-taxes/discussion/stebecas-you-can-not-receive-a-w-2-when-you-are-partne/01/596521#M23393
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<A href="https://ttlc.intuit.com/users/47982187-11bb-4447-856a-9fd339577822" target="_blank">@stebecas</A>&nbsp;&nbsp;&nbsp;You can not receive a W-2 when you are Partner.&nbsp;&nbsp;Was that the case, or were you an employee for part of the year, then you became a Partner?
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<pubDate>Thu, 06 Jun 2019 05:20:28 GMT</pubDate>
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https://ttlc.intuit.com/community/business-taxes/discussion/stebecas-you-can-not-receive-a-w-2-when-you-are-partne/01/596521#M23393
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<dc:creator>TaxGuyBill</dc:creator>
<dc:date>2019-06-06T05:20:28Z</dc:date>
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<title>
Hi, the business is setup as an S Corp- me as President (...
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https://ttlc.intuit.com/community/business-taxes/discussion/hi-the-business-is-setup-as-an-s-corp-me-as-president/01/596529#M23394
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Hi, the business is setup as an S Corp- me as President (98% shares) and my daughter as VP (2% shares).&nbsp;&nbsp;We pay ourselves via W2.&nbsp;&nbsp;Maybe the K1 doesn't even come into 'play' with us?&nbsp;&nbsp;
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<pubDate>Thu, 06 Jun 2019 05:20:30 GMT</pubDate>
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<dc:creator>sharrobins2</dc:creator>
<dc:date>2019-06-06T05:20:30Z</dc:date>
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<title>
@sharrobins2   So Box 1 of the K-1 should reflect the pro...
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<link>
https://ttlc.intuit.com/community/business-taxes/discussion/sharrobins2-so-box-1-of-the-k-1-should-reflect-the-pro/01/596535#M23395
</link>
<description>
<A href="https://ttlc.intuit.com/users/e248aa3c-2e7e-46a2-b71c-7df0d57f5acf" target="_blank">@sharrobins2</A>&nbsp;&nbsp;&nbsp;So Box 1 of the K-1 should reflect the profit of the corporation AFTER your wages were subtracted.
</description>
<pubDate>Thu, 06 Jun 2019 05:20:31 GMT</pubDate>
<guid>
https://ttlc.intuit.com/community/business-taxes/discussion/sharrobins2-so-box-1-of-the-k-1-should-reflect-the-pro/01/596535#M23395
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<dc:creator>TaxGuyBill</dc:creator>
<dc:date>2019-06-06T05:20:31Z</dc:date>
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<item>
<title>
If my expenses were more than what we took in, then it wo...
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<link>
https://ttlc.intuit.com/community/business-taxes/discussion/if-my-expenses-were-more-than-what-we-took-in-then-it-wo/01/596540#M23396
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<description>
If my expenses were more than what we took in, then it would be a loss.&nbsp;&nbsp;We are in 1st year of business so expenses were high for startup.&nbsp;&nbsp;Correct?
</description>
<pubDate>Thu, 06 Jun 2019 05:20:33 GMT</pubDate>
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<dc:creator>sharrobins2</dc:creator>
<dc:date>2019-06-06T05:20:33Z</dc:date>
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<title>
Yes, Box 1 of your K-1 would show a loss.  If you have "B...
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<link>
https://ttlc.intuit.com/community/business-taxes/discussion/yes-box-1-of-your-k-1-would-show-a-loss-if-you-have-b/01/596550#M23398
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<description>
Yes, Box 1 of your K-1 would show a loss.&nbsp;&nbsp;If you have "Basis" in the corporation, that loss would be deductible against other income on your personal tax return.
</description>
<pubDate>Thu, 06 Jun 2019 05:20:34 GMT</pubDate>
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<dc:creator>TaxGuyBill</dc:creator>
<dc:date>2019-06-06T05:20:34Z</dc:date>
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Thanks "TaxGuyBill", you have been very helpful.  I have...
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https://ttlc.intuit.com/community/business-taxes/discussion/thanks-taxguybill-you-have-been-very-helpful-i-have/01/596554#M23399
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Thanks "TaxGuyBill", you have been very helpful.&nbsp;&nbsp;I have an accountant who will do all of this for me but I like to be well informed before the process begins.&nbsp;&nbsp;Have a good day!
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<pubDate>Thu, 06 Jun 2019 05:20:35 GMT</pubDate>
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https://ttlc.intuit.com/community/business-taxes/discussion/thanks-taxguybill-you-have-been-very-helpful-i-have/01/596554#M23399
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<dc:creator>sharrobins2</dc:creator>
<dc:date>2019-06-06T05:20:35Z</dc:date>
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Re: Yes, Box 1 of your K-1 would show a loss. If you have "B...
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https://ttlc.intuit.com/community/business-taxes/discussion/re-yes-box-1-of-your-k-1-would-show-a-loss-if-you-have-b/01/1738883#M57119
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<P>Hi TaxGuyBill,</P><P>I am partnering with an existing business owner to acquire ownership through profit sharing contributions.&nbsp; The idea is to use profit sharing to purchase shares, up to and including 20%.&nbsp; The agreement is drafted for 2 years of automatic share purchases from the eligible profit sharing.&nbsp; My question is how can I use 100% of the profit sharing to purchase the shares pre-taxed, at least until all shares are purchase and the excess be taxed as income.&nbsp; Below are the brief details to the agreement.</P><P>&nbsp;</P><P>Goal: 2 year plan to gain 20% ownership by the end of year 2.&nbsp; Profit sharing will be automatically rolled into purchasing up to 200,000 shares of a 1,000,000 share company at $1.30 per share.</P><P>&nbsp;</P><P>Example: year 1 yields $130K in eligible profit sharing, to purchase 100,00 shares; 10%.&nbsp; Year 2 yields $65K in profit sharing and $65K in equity returns; 100% vested.</P><P>&nbsp;</P><P>Year 1: Profit sharing will be automatically rolled into purchasing.&nbsp; Remaining share percentage (10%) will be the eligible profit sharing for year 2.&nbsp;</P><P>&nbsp;</P><P>Year 2: Eligible profit sharing (10% per example) and equity returns from shares purchased in Y1 are automatically rolled into purchasing the remaining shares (10%) .&nbsp; Any excess returns are to be received and taxed as income.</P><P>&nbsp;</P><P>Please tell me if there is a tax differed strategy to do this without the profit shares or equity returns being taxed before purchasing the shares.&nbsp; Otherwise, I will need to pay out of pocket for any remaining shares.&nbsp; As you can imagine, I would have to write a very big check if taxed before purchasing shares.&nbsp; Any and all advice is much appreciated.</P><P>&nbsp;</P>
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<pubDate>Fri, 30 Oct 2020 23:34:40 GMT</pubDate>
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https://ttlc.intuit.com/community/business-taxes/discussion/re-yes-box-1-of-your-k-1-would-show-a-loss-if-you-have-b/01/1738883#M57119
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<dc:creator>Hautehead</dc:creator>
<dc:date>2020-10-30T23:34:40Z</dc:date>
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Re: Yes, Box 1 of your K-1 would show a loss. If you have "B...
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<link>
https://ttlc.intuit.com/community/business-taxes/discussion/re-yes-box-1-of-your-k-1-would-show-a-loss-if-you-have-b/01/1739344#M57138
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<BLOCKQUOTE><HR /><LI-USER uid="2729135"></LI-USER>&nbsp;wrote:<P>Goal: 2 year plan to gain 20% ownership by the end of year 2.&nbsp; Profit sharing will be automatically rolled into purchasing up to 200,000 shares of a 1,000,000 share company at $1.30 per share.</P><P>&nbsp;</P><HR /></BLOCKQUOTE><P>&nbsp;</P><P>Go to a good tax professional.&nbsp;&nbsp;</P><P>&nbsp;</P><P>It is crazy to be planning something complex involving hundreds of thousands of dollars without sitting down with a good tax professional that look at all of the details.</P><P>&nbsp;</P><P>And assuming you mean retirement accounts when you are referring to "pre-tax" and "profit sharing", that further complicates things, including the fact there are limitations for contributing to retirement accounts.</P><P>&nbsp;</P><P>Again, go to a tax good professional.</P>
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<pubDate>Sun, 01 Nov 2020 21:49:11 GMT</pubDate>
<guid>
https://ttlc.intuit.com/community/business-taxes/discussion/re-yes-box-1-of-your-k-1-would-show-a-loss-if-you-have-b/01/1739344#M57138
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<dc:creator>AmeliesUncle</dc:creator>
<dc:date>2020-11-01T21:49:11Z</dc:date>
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Re: Yes, Box 1 of your K-1 would show a loss. If you have "B...
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<link>
https://ttlc.intuit.com/community/business-taxes/discussion/re-yes-box-1-of-your-k-1-would-show-a-loss-if-you-have-b/01/1739353#M57139
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<P>another wrinkle is that a retirement a/c owning an interest in a profit-making business may have to file 990-T to pay tax on unrelated business income.&nbsp; another issue, how do you get the money out if you need it. under</P><P>59-1/2, there's a penalty.&nbsp; &nbsp;company goes belly up - no deduction - you suffer the loss thru a reduced value of the profit-sharing a/c.&nbsp; &nbsp; &nbsp;see a pro&nbsp;</P>
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<pubDate>Sun, 01 Nov 2020 22:20:26 GMT</pubDate>
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https://ttlc.intuit.com/community/business-taxes/discussion/re-yes-box-1-of-your-k-1-would-show-a-loss-if-you-have-b/01/1739353#M57139
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<dc:creator>Anonymous</dc:creator>
<dc:date>2020-11-01T22:20:26Z</dc:date>
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