Schedule K Form 1065?

Question

When I enter the Ordinary business Income on line 1 of Schedule K, is that how much we made minus our cost of goods sold and deductions? OR do I cut that in half since my partner and I own the business 50/50?

Example: Say our Ordinary business Income is $500 on the first page of form 1065, line 22. When I work on Schedule K, do I enter the amount of $500 or $250 on line 1 to indicated my share?

Answer 1

You enter $500. Schedule K at this point is the partnership's INFORMATION RETURN (1065)-Page 3.

Your $250 is your portion of the profits. This goes on Schedule K-1 which is your flow-through document reported on Schedule E, Page 2 of your Personal Income Tax Return (1040). You need to fill out two Schedule K-1s. One for you and one for your partner, and the amounts in each of the boxes add up to what is on your 1065.

Answer 2

A 1065 is an informational tax return filed by using partnerships. Your Dad's LLC might desire to be a multi-member LLC it quite is being taxed as a partnership. A ok-a million has earnings suggestion from the partnership for each substantial different. ok-1s are filed with the 1065 and additionally issued to each substantial different. it quite is, each and every substantial different gets a ok-a million that has earnings suggestion particular to him. A ok-a million info the companions' earnings for the tax year. whilst your Dad data his very own tax return, he could enter the suggestion from his ok-a million on his very own tax return (type 1040). yet he would not could document the ok-a million along with his very own tax return.