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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28081
Experience:  Taxes, Immigration, Labor Relations
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Why would a question be locked/hidden from normal users?Why

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Why would a question be locked/hidden from normal users?Why is this done? Will the qestion be answered?
Submitted: 4 years ago.
Category: Tax
Expert:  Lev replied 4 years ago.


Hi and welcome to Just Answer!


The question may be "locked" per user's request. Otherwise all questions might be available for general public - so please avoid posting personal information.
If you meant any specific question - please post a link here - and I will verify for you.


This was my question:

On a llc partnership, One partner contributed cash $87.600 (funding partner) the other partner contributes labor (working partner). On 1065 is any of this entered? Also would I make an entry in Quick Books, the first year business was a loss so I'm think...


Contributions are not reported on form 1065 - that is income tax return - and only income and deductions are reported.


Balance is reported on schedule L - but that is only for large partnerships. Most likely - you do not need to use this form -

Customer: So the only place the contributions are listed are on the balance sheet and they would reduce if the partner shows a profit at the end of the year? If the partner takes a guaranteed payment would this then reduce his contribution? Would guaranteed payments reduce the contributions until they are gone then the guaranteed payments would be taxable?

When the partnership has an income - it is calculated to the tax return - form 1065.

All business income and expenses are reported on the partnership tax return form 1065 -

Partnership should issue schedules K-1 to each partner reporting pro-rata share of net taxable income -

That income is taxable for each partner regardless if it is distributed or not.


Guaranteed payments are those made by a partnership to a partner that are determined without regard to the partnership's income. A guaranteed payment is treated differently - it is deducted in the computation of partnership income. The partnership generally deducts guaranteed payments on line 10 of Form 1065 as a business expense.
They are also listed on Schedules K and K-1 of the partnership return. The individual partner reports guaranteed payments on Schedule E (Form 1040) as ordinary income, along with his or her distributive share of the partnership's other ordinary income.

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