Hi and welcome to Just Answer!1. I own a real estate company and make money both selling homes myself and through the LLC. Should I enter this income on a Schedule C or on a K1
The federal government does not recognize an LLC as a classification for federal tax
purposes. The "single member" LLC is generally treated as a sole proprietorship unless you specifically choose differently- means - all income and expenses are reported on owner's individual tax return as for a solo proprietorship.
Thus - all income and expenses are reported on your tax return schedule C.
There is no schedule K-1 for single member LLC.
2. I rent a home, is there any kind of deduction for that?
Yes - if you are using a part of your home for business.
Generally, in order to claim a business deduction for your home, you must use part of your home exclusively and regularly:
-- as your principal place of business, or
-- as a place to meet or deal with patients, clients or customers in the normal course of your business.
Generally, the amount you can deduct depends on the percentage of your home used for business. Your deduction for certain expenses will be limited if your gross income from your business is less than your total business expenses
If you are self-employed, use Form 8829, Expenses for Business Use of Your Home to figure your home office deduction and report those deductions
on line 30 of Form 1040 Schedule C, Profit or Loss From Business.
For more information see IRS Publication 587, Business Use of Your Home.http://www.irs.gov/pub/irs-pdf/p587.pdfhttp://www.irs.gov/pub/irs-pdf/f8829.pdf
Let me know if you need any help.