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What can I do to bring my taxes owed down when I have a K1

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What can I do to...
What can I do to bring my taxes owed for 2014 down when I have a K1 (LLC) from owner draws and some profit from our first semi-profitable year in the business (the business had a profit of $28k and I am 50% owner) which has put our SE tax high as well as our taxable income tax. Is there something I am missing or any write-offs I may be overlooking? Thanks!
Submitted: 2 years ago.Category: Tax
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Answered in 25 minutes by:
10/7/2015
Tax Professional: Lev, Tax Advisor replied 2 years ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,621
Experience: Taxes, Immigration, Labor Relations
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generally as a partner - the best way to reduce your expenses is to submit report for all business expenses to the partnership and deduct these on the partnership tax return (form 1065). By doing that - you will reduce taxable income reported on K1 - and that will reduce both - income and self-employment taxes.
If you are looking for possible business expenses which might be overlooked - I think following publications might be helpful
Tax Guide for Small Business

http://www.irs.gov/pub/irs-pdf/p334.pdf

Business Expenses

http://www.irs.gov/pub/irs-pdf/p535.pdf

As you are filing your personal income tax return (form 1040) - generally you may not deduct expenses related to the LLC (those are deducted on form 1065) - but should be concerned about personal deductions which are reported on schedule A.
http://www.irs.gov/pub/irs-pdf/f1040sa.pdf

For most peoples these are - home mortgage interest, state taxes, charitable contributions, etc.
Additional large deduction is related to health insurance. If you qualify - the cost of insurance is deducted as an adjustment to income on form 1040 line 29.

If you had some expenses and not sure whether these are deductible or not - let me know and I will help to verify.

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Tax Professional: Lev, Tax Advisor replied 2 years ago

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