turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Form 1065 Schedule K-1 - Income and Deductions

I made an investment in a Real Estate Loan LLC which holds mortgage notes. I received my first K-1 for 2023 and it shows interest income that is almost double the amount of distributions I received. There are deductions on line 13, but it appears that I am being taxed on the entire amount of interest the LLC earned, rather than either the distribution figure or the income less the deductions. Is this correct?

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions
MinhT1
Employee Tax Expert

Form 1065 Schedule K-1 - Income and Deductions

Yes, this correct.

 

The LLC is a pass-through entity and you are taxed on the entirety of the profit/interest allocated to you on your Schedule K-1, even if that profit/interest hasn't been distributed to you.

 

Distributions are reported in box 19 of your Schedule K-1 and aren't taxed if they don't exceed the basis of your LLC membership interest.

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

1 Reply
MinhT1
Employee Tax Expert

Form 1065 Schedule K-1 - Income and Deductions

Yes, this correct.

 

The LLC is a pass-through entity and you are taxed on the entirety of the profit/interest allocated to you on your Schedule K-1, even if that profit/interest hasn't been distributed to you.

 

Distributions are reported in box 19 of your Schedule K-1 and aren't taxed if they don't exceed the basis of your LLC membership interest.

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies