Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

We have an LLC and my husband materially participated and…

Customer Question
We have an LLC...

We have an LLC and my husband materially participated and received $6,000 in guaranteed payments. The Form 1065 and K-1s are complete for all partners. Does my husband have to include a Schedule C for the guaranteed payments?

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

I just need to know what to do with the guaranteed payments on our joint 1040 tax return.

Accountant's Assistant: Is there anything else the Accountant should be aware of?

No, everything else is normal

Submitted: 2 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 9 minutes by:
2/28/2016
Tax Professional: Stephen G., Sr Income Tax Expert replied 2 years ago
Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7,473
Experience: Extensive Experience with Tax, Financial & Estate Issues
Verified

Is Box 14 on the Form 1065 K-1 completed?

Ask Your Own Tax Question
Tax Professional: Stephen G., Sr Income Tax Expert replied 2 years ago

The guaranteed payments belong on Form 1040 Schedule E Column (j)

If you look at the references on the 2nd page of the K-1 for line 4 on page 1 you'll find the same reference:

"Guaranteed payments Schedule E, line 28, column (j)"

What remains is to determine if the "Guaranteed Payments" constitute "self-employment" income which should

be noted in Box 14 on Page 1 of the K-1.

Let me know if you have any additional questions.

Steve G.

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Stephen G. Your Own Question
Stephen G.
Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7,473
7,473 Satisfied Customers
Experience: Extensive Experience with Tax, Financial & Estate Issues

Stephen G. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I am filling my personal taxes and I am believe I am
I am filling my personal taxes and I am believe I am claiming my 1099-k income properly via turbo tax. But I am unsure if i need to and/or how I would filed a 1065 … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,674 satisfied customers
Another question while I am waiting for the other answer.
Another question while I am waiting for the other answer. Lets say a partnership LLC redeems out another partner's interest during the year and just becomes a sole proprietor llc. Would a 1065 need to… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
A follow-up question to a chat that is posted under the
A follow-up question to a chat that is posted under the question "LLC partnership has a 401(k) plan." I get how it should be reported, but I don't know how I can enter the retirement contribution for … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
My wife and I own a partnership. We are 50/50 partners. I do
My wife and I own a partnership. We are 50/50 partners. I do 99% of the work in the partnership. Can I change her from a 50% partner to a 10% partner to save on self employment taxes when we file our … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My LLC needs to file an extension today via the 7004 form.
My LLC needs to file an extension today via the 7004 form. If all of the LLC income was filed in 1040, what should be written in lines 6 and 7 of the 7004 form?… read more
abci168
abci168
Principal
27 satisfied customers
Where do I deduct home office expenses husband-wife partnership
Where do I deduct home office expenses for a husband-wife partnership LLC for a service business? We filed 1065 and received K-1s.… read more
Megan C
Megan C
Certified Public Accountant (CPA)
Master's Degree
8,655 satisfied customers
I am preparing a 1065 - Among 6 of the members , I need help
I am preparing a 1065 - Among 6 of the members , I need help with 2 of the members -2 couples have their ownership and MR & Mrs as tenants by the entirety. I know that each spouse of both couples will… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Are “guaranteed payments” on Form1065 taxable to a partner?
How is “guaranteed payments” on Form 1065 taxable to a partner? I manage an LLC (let's call it A, LLC), which is taxed as a partnership (files 1065). Both partners are other companies (B, LLC and C, L… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
On an S Corp an individual receives "compensation of officers".
On an S Corp an individual receives "compensation of officers". Is this put on his personal return and if so what line?… read more
Phillip Bell, EA
Phillip Bell, EA
Tax Advisor
Bachelor's Degree
191 satisfied customers
My husband and I own an LLC in Texas. Previously we have paid
My husband and I own an LLC in Texas. Previously we have paid ourselves via W-2, but I want to change this to guaranteed payments + member draws to minimize our quarterly paperwork and also save on fe… read more
Charles Greiner
Charles Greiner
Owner
Bachelor's Degree
2,436 satisfied customers
I am a dietician. I have a partnership company with my husband
I am a dietician. I have a partnership company with my husband under an LLC. I started offering nutrition services to a local company. I send them an invoice each time. What forms should I fill in add… read more
Stephen G.
Stephen G.
Sr Income Tax Expert
Bachelor's Degree
7,473 satisfied customers
Hi, Two Business tax questions Partnership How are
Hi, Two Business tax questions: Partnership: How are self employment taxes calculated over dividends of partners in an LLC? If so, do these need to be paid over 100% of the dividends? Is there an limi… read more
Stephen G.
Stephen G.
Sr Income Tax Expert
Bachelor's Degree
7,473 satisfied customers
Just got a letter from the IRS asking for 1065s for an LLC
Just got a letter from the IRS asking for 1065s for an LLC owned by my husband and I.We recently had an operating agreement done showing my ownership at 51% and my husband's ownership at 49%. My accou… read more
RD
RD
Self Employed
Master's Degree
1,164 satisfied customers
Hi, we are self employed. We have a webpage and from there
Hi, we are self employed. We have a webpage and from there we offer web designing & audio/video streaming services to our clients. We also signed up for Google adsense and they pay us for putting thei… read more
Stephen G.
Stephen G.
Sr Income Tax Expert
Bachelor's Degree
7,473 satisfied customers
started business in 2009 as an LLC with 6 members...we didnt
started business in 2009 as an LLC with 6 members...we didn't make any money at all this year and all members were just contributing their time, skills etc instead of cash... about midway through the … read more
Jon Andrews
Jon Andrews
CPA
2,926 satisfied customers
My wife and I made $234,000 in Schedule C income this year
My wife and I made $234,000 in Schedule C income this year (no 1099s). She also made 46,000 in W-2 wages. We were not incorporated and not even registered sole proprietors. We want to set up a self-di… read more
Bill
Bill
Master's Degree
2,278 satisfied customers
We set up alimited Family partnership last year. It had ...
We set up alimited Family partnership last year. It had no income but I believe I still need to file. What tax documennts do I need to submit?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I am a real estate professional. My husband and I ...
I am a real estate professional. My husband and I bought, repaired a rental property. I manage the property under a separate LLC for limited liability purposes. Do I enter expenses and income for the … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x