Pacun Posted March 13, 2008 Report Share Posted March 13, 2008 LLC with 2 partners share losses and profits 50/50. These are 2 acrobatic dancers. Each time that a partner performs, he gets paid $200 and the rest goes to the pool. At the end of the year, one partner made $3,000 more than the other partner. How do I report this on K-1? If I leave the 50/50 sharing, each gets equal amounts on K1. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted March 13, 2008 Report Share Posted March 13, 2008 LLC with 2 partners share losses and profits 50/50. These are 2 acrobatic dancers. Each time that a partner performs, he gets paid $200 and the rest goes to the pool. At the end of the year, one partner made $3,000 more than the other partner. How do I report this on K-1? If I leave the 50/50 sharing, each gets equal amounts on K1. Guaranteed Payments to Partners; which are based on their active participation. Deductible to the Partnership, but taxable to each Partner for his pro-rata share. Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 13, 2008 Author Report Share Posted March 13, 2008 Guaranteed Payments to Partners; which are based on their active participation. Deductible to the Partnership, but taxable to each Partner for his pro-rata share. Does it mean that I will have to file a Schedule C with the amounts from K-1 and guaranted payments? Quote Link to comment Share on other sites More sharing options...
Alpha Posted March 13, 2008 Report Share Posted March 13, 2008 No the K-1 amounts including the guaranteed payments go on the Sch E and are subject to SE Quote Link to comment Share on other sites More sharing options...
mcb39 Posted March 14, 2008 Report Share Posted March 14, 2008 Does it mean that I will have to file a Schedule C with the amounts from K-1 and guaranted payments? You put the total amount on the Sch K and then split the amount per partner on the K-1 Guaranteed Payments Line. It will automatically go to the back of the Sch E and be included in the SE income from the Partnership (50%) or adjusted by the loss if there is one. Good Luck Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 14, 2008 Author Report Share Posted March 14, 2008 Thanks. I said schedule C by mistake because on the back of my mind I was thinking about SE taxes. I have done this 1065 for a couple of years but this is the first time they are not spliting evenly. Thank you again. Quote Link to comment Share on other sites More sharing options...
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