pashurservices
Level 1
09-13-2021
03:27 PM
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Client is a sole proprietor of Business X. Business X is a partner of business Y. Business Y filed taxes on 1065 and handed Business X a K-1. Since business x is a sole proprietorship and not set up a S-corp taxes must be filed on schedule C of owner tax return. Where should K-1 be reported for Business X? As gross receipt or income on schedule C? Or should it be added on Schedule E?
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Level 15
09-13-2021
03:48 PM
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It doesnt go on Sch C, it gets entered the same as any other K-1, fill out the K-1 worksheet.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
pashurservices
Level 1
09-13-2021
05:29 PM
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k-1 is for business and not for owner, would that be the same case?
sjrcpa
Level 15
pashurservices
Level 1
09-14-2021
08:45 AM
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Thanks,
Level 15
09-14-2021
10:29 AM
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A sole prop isn't a separate business entity, the owner IS the business.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪