Thursday, July 30, 2009

Schedule C or Schedule K1 on Individual 1040 tax return?

I have X amount of $ income from an LLC that I run with my wife, so, I file a 1065 for LLC and each one of us have get a Schedule K1 with X/2 amount as income.





Now on our personal tax 1040, I want to claim a Home Office deduction and that, as I understand has to entered on Schedule C of 1040. Now, where do I report my income from the business? Should it be on Schedule C as income or as a partnership income? If we go Schedule C rout, Schedule C only shows a net loss from the business bcause of deductions whereas, I am reporting my income from the Business on Line 17 of 1040.


Should I just do a Schedule C (with income reported on it) and not enter my Schedule K1 on line 17?





Any help with this is appreciated.

Schedule C or Schedule K1 on Individual 1040 tax return?
If the home office was for the partnership, the expense goes on the 1065 and flows to the K-1 there.

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