Business Taxes 1065

[Joegensl]

Hello.
In filing a 1065, my wife and her partner's profit isn't derived from the % of the counseling business that they own. They each take home what they make from clients. 
I believe that I can enter this in "guaranteed payments". If there's another way, please let me know!
And as far as business expenses, do I have to combine what they both paid as far as rent and such, or can I leave this blank and let them each put those expenses on their separate 1040s?
I'm trying not to screw this up too badly...but already did since the deadline for 1065 was a month ago...

HELP!

[AliciaP1]

Yes, you should enter the amounts "taken home" by each partner as guaranteed payments, but items paid by the business need to be reported by the business.  You should be reporting the total income (that the partners took home) and expenses for the business as the income and deductions on the 1065.  The allocated net income will flow to each partner's K-1 and each will show their guaranteed payments. 

[Joegensl]

Thank you!

Next question:

Do I need a balance sheet to do my 1065??
It's a very "mom and pop" sort of operation we have going on here, and i keep getting hung up in quickbooks trying to make everything balance out. We keep $500 in the company bank account, and both partners are paid (as are our 1099 contractors) out whatever they make on a bi-weekly basis.

Is there a VERY simple way to enter what the business made overall, what they paid to 1099 contractors, what they "took home" separately, deduct expenses and be done with this so that I can simply figure out what should be on our K1s?..

[AliciaP1]

You only need to report a Balance Sheet for the partnership if Yes to all of the following (per question 4 on Schedule B of the 1065)

• a The partnership’s total receipts for the tax year were less than $250,000.
• b The partnership’s total assets at the end of the tax year were less than $1 million.
• c Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return.
• d The partnership is not filing and is not required to file Schedule M-3.

@Joegensl