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Entering K-1 for a single member LLC to flow to SCH C in proconnect

Forum|Forum|2 years ago
April 13, 2024
3 replies
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Hello,

I need to enter K-1 issued to a single member LLC . how do I enter the K-1 to SCH C in Pro Connect tax online. This is what the LLC was created to do. It received 1099-DIV as income as well from the business investment activities.

How to I enter the K-1 boxes to be linked with SCH C not as a rental or partnership for the individual. It can not be a passive loss to the business so it should flow to schedule C.

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Best answer by sjrcpa

oh, my bad. I see where I was not clear enough. The LLC did not issue the K-1, the LLC received the K-1 from its investments. Although that one was a loss, it did receive a 1099-DIV from another investment. the LLC is a partner in an REIT investment which it received its K-1 from.

I was confused on how to enter the LLC K-1 received in its sch C, or maybe to just enter it in the general K-1 section which would be reported as a passive loss that won't flow directly to the SCH C.... pls correct or enlighten me if I am wrong lol... Thanks.

If the single member LLC is disregarded for tax purposes, you disregard it. Enter the K-1 and 1099-DIV as you would if it was in the name of your individual client. These do not go on Schedule C.

BobKamman

Level 15

Are you trying to make apple sauce from oranges, or marmalade from apples? Your post suggests that the K-1 shows a loss, which indicates it was set up to be taxed as a corporation, then elected S status. Its business is the same as the one shown on the Schedule C? The Schedule C has other income not received from the LLC activities?

Let me guess, someone went to a seminar.

M

Mary SASLLCAuthor

Level 4

Thank you for your response.

The answer to your question "if the business is the one on schedule C" is yes. The K-1 was issued to the Single member LLC business, and it is a loss from the business ordinary activity because the primary curse of the business is investments which is from REIT, securities and some real estate acquisitions. This is why I am skeptical about reporting it in the other income not received from the LLC activity section. the taxpayers name was not on the K-1.

Any idea if it is possible to enter it in the K-1 1065 section in pro connect and link it to sch C or would I just have to enter it as an ordinary business or loss directly on the sch C.

Your input is highly appreciated.

Also, just for clarification, my post does not indicate that the LLC elected to be treated as a Corp, nor did it indicate that it elected S-corp. Thanks for the observation. I can provide clarification If i was not clear enough, and I don't understand the seminar part, that was not necessary. please elaborate.

BobKamman

Level 15

How else would a single-member LLC be issuing a K-1, if not as an S corporation? Otherwise you have a disregarded entity.

I like the part about the primary curse of the business.

qbteachmt

Level 15

"This is what the LLC was created to do. It received 1099-DIV as income as well from the business investment activities."

I'm trying to understand this part. You want it on Sched C as if there is a business being operated? Like, for instance, your taxpayer formed the LLC to "be an angel investor?" Or, is a venture capitalist?

Don't yell at us; we're volunteers

M

Mary SASLLCAuthor

Level 4

Thank you all for your input, from all the responses, I want to be sure am understanding the message. The suggested conclusion is It should be entered directly into the tax return as it should if the LLC name was not on the K1 or the 1066-DIV since the business is a disregarded entity, correct? !!!!

sjrcpa

Level 15

Correct!

The more I know the more I don’t know.

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