ProSeries Professional; LLC Sch C & K-1 income

[wadams37]

I'm having an issue with a client's new single member LLC tax return in the Professional program. The linking of one K-1 (form 1065) income to his Schedule C does not seem to be an option? Taxpayer created a new EIN # for his consulting business and several clients paid him on 1099-NEC, (no problem here, they all flow to Sch C), but one entity reported his income on a K-1 since he made an investment with this company through his LLC using his new EIN #.

All the income sources were reported in the new Federal EIN # which is listed on his Sch C. My issue is, the program takes the K-1 income to a Sch 1 and then the 1040, but how I change that to report this on the LLC Sch C?

Thank you,

William

[qbteachmt]

"but one entity reported his income on a K-1 since he made an investment with this company through his LLC using his new EIN #."

There is no LLC here; it is Disregarded.

[qbteachmt]

Oh, to further clarify: It is on a K-1 because the reporting entity is a multi-member LLC or S Corp. Not because he invested through his LLC. That part was described backwards.

He invested as his LLC, which is disregarded. What he invested into, is why there is a K-1.

[qbteachmt]

Let me try one more thing: "since he made an investment with this company"

Schedule C has no Balance Sheet. He made an investment. That is him, a person, which is the same as the Sched C person, because only Corporations are their own entity. This is his K-1. His business EIN is for his business operation. His SSN is him, and his own investments. His Schedule C is part of Form 1040. Notice the difference between Schedules and Forms.

[sjrcpa]

The K-1 gets reported on your client's 1040 Schedule E page 2, not Schedule C.