topic Business income/draw in Business & farm

Business income/draw

Skelley1831 — Mon, 22 Mar 2021 16:05:01 GMT

My wife has an LLC business, where in turbo tax home and business do we enter a draw from the business?

Re: Business income/draw

MinhT1 — Mon, 22 Mar 2021 16:21:42 GMT

If your wife's business is a single-member LLC and she files a Schedule C for the business in TurboTax Home & Business, then drawings from the business are owner's distributions and are not deductible expenses.

You do not enter these drawings on Schedule C.

Re: Business income/draw

Skelley1831 — Mon, 22 Mar 2021 16:31:48 GMT

She is a single member LLC and we are filing schedule C. So does her draw from the business get entered under her in personal income? If so where? I cant seem to find where to enter it.

Re: Business income/draw

JeffreyR77 — Mon, 22 Mar 2021 16:45:36 GMT

No, draws from Schedule C businesses are not income nor are they expenses of the business. The income of a Schedule C business is the profit of the business. That amount is subject to self-employment tax and income tax.