topic Business expenses under self-employment or Schedule K1 in Business & farm

Business expenses under self-employment or Schedule K1

discfor1 — Sat, 01 Jun 2019 18:04:13 GMT

TurboTax allows me to enter business expenses in the self-employment deductions section and under the K1 section. My wife is self-employed with an LLC and is in a partnership. She gets a Schedule K1. This is not her only source of income, but it is the largest. So, does it matter if we put the unreimbursed expenses under the Self Employment income and expenses section or under the Schedule K-1 section? Are these treated differently by the IRS or by TurboTax? Examples are travel, office supplies, meals, phone, etc.

Unreimbursed partner expenses are not reported on the Sch...

PhyllisG — Sat, 01 Jun 2019 18:04:14 GMT

Unreimbursed partner expenses are not reported on the Schedule K-1 of the partnership because they are expenses incurred by the partner. Your spouse should claim the expenses on the Form 1040 Schedule C.

Hi and thank you for the answer. I am still confused. I...

discfor1 — Sat, 01 Jun 2019 18:04:15 GMT

Hi and thank you for the answer. I am still confused. I am on the Self Employed work summary under Federal. I am using online TurboTax, the self employed small biz version. This is the place we have been putting all the biz expenses, home office deduction, car used for biz expense, and so on. However, in the K1 area, basically 1 level up to Income and Expenses, then select Schedule K-1, the wizard asks about business expenses and so on. they seem to be the same as the in the Self Employment area. Are there some that should be entered in the K-1 area. She is not filing this info with the K-1, that form is being provided to us from the partnership accountant. Perhaps all the info ends up on the schedule C in the end? Or, are there some expenses, called unreimbursed expenses that are better handled on the K-1 section within TurboTax, or perhaps by the IRS?

Or perhaps 1040 Schedule E?

discfor1 — Sat, 01 Jun 2019 18:04:17 GMT

Or perhaps 1040 Schedule E?

Re: Hi and thank you for the answer. I am still confused. I...

Pepper_Newton — Wed, 19 Jun 2019 00:33:57 GMT

I have the same question. Well worded.

Re: Hi and thank you for the answer. I am still confused. I...

gammylt — Wed, 19 Jun 2019 14:40:49 GMT

Put the employee expenses under the business of which you incurred them. IF I have SE and K1 and Sched C I enter the employee expense under that company.