I believe box 1 of my K-1 is comprised of my car and asset expenses. So, would I need to record them in TurboTax in "Review Vehicle Expenses" and "Asset Information?"

[nyccomposerbuddy]

I provided my tax accountant with asset and vehicle information - like how much assets cost, the mileage, gas, insurance, and car maintenance. I believe box 1 is comprised of that already, so I'm thinking I don't need to add them in TurboTax when they're asking for it.

[PatriciaV · Accepted solution]

You are correct. The information reported on Schedule K-1 shouldn't need to be added to any other section of TurboTax. It appears your business vehicle is considered an asset of the LLC (or S-Corp) and all expenses would flow through the K-1.

See this article for more info: Where do I enter a Schedule K-1 that I received?

[nyccomposerbuddy]

Thank you very much, Patricia! That's good to know. I don't know why TurboTax asks about assets and car expenses when you could just enter the number from Box 1 in its previous question.

I'll also skip the Transportation/Travel/Meals/Entertainment and Gifts/Education/Publication and Miscellaneous sections. I'll honestly just keep putting ALL these type of expenses in my future spreadsheets for our tax guy and then they'll just reflect in the K-1.

Thank you again!

[PatriciaV]

Are you entering the information from Schedule K-1 under the K-1 topic in TurboTax? This activity should NOT be entered under Self-Employment or Business Income and Expenses (Schedule C). See the article link in my earlier post.

[nyccomposerbuddy]

Yes, I am - where it says "Tell Us About Your Schedules K-1." This has sections where TurboTax asks about car/assets/gifts/miscellaneous/transportation/meals/entertainment/travel/education/publication. Since my spreadsheet has this info, and our tax guy gave us a K-1, I am just ignoring these sections moving forward.

I am not entering anything in the Self Employment section.