Friday, August 19, 2011
Partnership taxes LLC - I think I really screwed up. Help?
OK - I've been selling real estate as an agent for 5 years now. It was pretty easy to do my taxes, schedule C and all, depreciating business equipment etc. Well, last year, I formed an LLC with two other business partners. All our income was paid to the LLC under the LLC tax id number. We had a team checking account that our team expenses were paid through and when I did our taxes, I did a K1 for each of us. My problem is: I just tried to do my personal taxes and I see that the K1 is shown as regular income, not a business income. I didn't include all my business expenses that I paid for out of my personal checking account, nor did I do any depreciation as I thought I was going to be able to do that on my personal taxes. It now looks like I can't even do a schedule C since all my business income went to the LLC. The question is: do I have to revise the team taxes to include the expenses I had including depreciation to get the K1 amount down?
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