Schedule K-1 Form 1065

[ETM]

There were four members in the LLC established for the farm -- two were trusts and two are individual partners. One of the beneficiaries of one of the trusts died. My husband receives a Form 1065 and because of his brother's death, things were manually calculated this year. So instead of seeing numbers in Box 1, I now see them in Box 11. However, it doesn't seem like the income was added to our overall income. Seems like self-employment taxes were calculated as was QBI. But I am wondering why the income stream is reported as 0.

[MelindaS1]

I'm sorry for the loss in your family this year. Both ordinary income from business (Box 1) and other income from business (Box 11) wind up on your Schedule C as QBI, so it seems that everything is calculating correctly per your tax return input. As for the treatment of the income at the partner level (flowing it thru Box 11, rather than Box 1), unfortunately, you would have to reach out to the partnership accountant and tax preparer to get an answer about this information; there are a lot of complications when a partner is no longer in the partnership, and it depends on what has happened previously with the business activity.