The income from the 1099-Misc is already captured on the K-1 that is being filed for a multimember LLC. It seems as though the information will be redundant if I enter the 1099-MISC in Deluxe as well as the K-1 since the K-1 already takes into account all of the business information that was generated. Am I correct in my thinking? If so I should just hold onto the 1099-Misc for my tax records and not send off to IRS since not required with Form 1065?
We formed a multimember LLC this past year and assigned our sole proprietor lawn care business to the LLC. I am reporting our income and expenses on Form 1065. If I understand the comment above correctly, that means that I don't actually enter the individual details of each 1099-MISC anywhere? I just make sure to include that income in my total amount of service income?
We formed a multimember LLC this past year and assigned our sole proprietor lawn care business to the LLC. We are filing our income and expenses on a Form 1065. If I understand that above comment correctly, does that mean that I don't actually enter the 1099-MISC individual information anywhere? I just include the 1099 income in my total business income?
The information from Form 1099-MISC would be entered as business income for Form 1065. Your portion would be reported on your Schedule K-1 from the business return.
Yes, you are correct. If the information on Form 1099-MISC has been recorded on the tax return for the LLC, you would not include that income on your personal tax return. Schedule K-1 reports flow-through income (including the 1099) to be reported on your personal return.
As a 50/50 LLC partner, do I file a Form 1099 MISC AND a Schedule K 1? I do not receive a W-2 Thanks.
HH
You would just file the K-1 form if the form 1099-MISC income was reflected on the partnership return.
In the future, if your social security number is listed on the 1099 form, you should change that to the partnership ID number. Otherwise, the IRS will add the 1099 income to your tax return and send you a letter requesting additional tax from you.
If that happens, however, you just need to explain what happened and they will reverse the tax.