LLC - cash reserve taxed 2x

[ProfitPartnersTax]

How do we prevent our reserve from being taxed twice?  We left $10k in the bank year end and our K1's now include $5k for each member as ordinary income since the 10 K was not listed as an expense.  We will also be taxed when we distribute that 10k this year.

[DianeC958]

The reserve will not be taxed twice.

The amount you are taxed on depends on the amount of income reported on your K-1, not the amount of the distributions.

The income you are taxed on is reported in Boxes 1-11 of the form K-1 1065

Link to Form K-1 1065

[ProfitPartnersTax]

Thank You Diane.  That's what I thought but Turbo Tax if auto filling Line 1 - ordinary income to include the reserve as we enter in the percentage each member gets for Profit. 
That number is Gross Receipts minus Expenses = Ordinary income (the reserve is in here)