business

Forum|Forum|3 years ago
November 17, 2022
1 reply
2 views

I invested and partnered with a friend’s company XYZ LLC in their hospitality business. I used my name and didn’t form my own LLC. I am receiving a K1 from them. Everything that I make on the K1 is treated as an income, and any loss whether capital or depreciation is deducted from it. if I incur expenses from driving to/fro to he site of business and other expenses I incur…Is there any way to deduct personal or business expense even though I didn’t form a LLC to this particular business. thanks

Corrlich44

Level 6

That is a great question.

To start, the first thing I would do is submit any direct costs associated with that business for reimbursement (if applicable) to get those costs a company expense.

Otherwise, you can report the additional cost you incur as a direct business expense within TurboTax when you will be prompted to answer that exact question of incurring cost. Any amount you report will reduce the associated income for that Schedule K-1.

If you are considered an OWNER, that would be the only reason to receive Schedule K-1 and does not require you to form an LLC.

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