Solved
K-1 from Partnership - Report income on 1040
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?
