K-1 from Partnership - Report income on 1040

[pashurservices]

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? 

[Just-Lisa-Now-]

It doesnt go on Sch C, it gets entered the same as any other K-1,  fill out the K-1 worksheet.

[pashurservices]

k-1 is for business and not for owner, would that be the same case?

[sjrcpa · Accepted solution]

Yes

[pashurservices]

Thanks,

[Just-Lisa-Now-]

A sole prop isn't a separate business entity, the owner IS the business.