How to Fill Out Form 1065 for 2021. Step-by-Step Instructions
ฝัง
- เผยแพร่เมื่อ 28 ก.ย. 2024
- Form 1065 Example for 2023 tax year: • How to Fill Out Form 1...
Form 1065 Example for 2022 tax year: • How to File Form 1065 ...
Form 1065 Example #2 for 2022 tax year: • How to File Form 1065 ...
For more tutorials on Form 1065 filings:
• Form 1065 (Partnership...
How to fill out Form 1065 for the 2021 tax year. We have a simple example for an LLC taxed as a partnership with a simple profit and loss, a balance sheet, and two LLC partners.
For other form tutorials that might be applicable to your return, check our videos here:
Do you need a partnership return if you lost money:
• Do I Need to File a Fo...
Schedule C: • Form 1065 Schedule C -...
Schedule B-1: • Form 1065 Schedule B-1...
Schedule B-2: • How to Elect Out of th...
Form 8825 Rentals: • How to Complete IRS Fo...
Record Unreimbursed Partnership Expenses: • How to Record your Unr...
Recourse vs Nonrecourse: • Recourse vs Nonrecours...
Deducting Business Gifts: • Can Business Gifts Be ...
Foreign Owned LLC Form 1065: • Foreign Owned Multi-Me...
Foreign Owned LLC Partnership Pay No Tax: • Foreign Owned Multi-Me...
Do I Need a Form 1065 If I Lost Money: • Do I Need to File a Fo...
For a larger database of tutorials, please visit our website and search for your question:
knottlearning....
DISCLAIMER: The information provided in this video may contain information about tax, financial, and legal topics. Such materials are for informational purposes only and may not reflect the most current developments. These informational materials are not intended and should not be taken as tax, financial, or legal advice. You should contact an advisor to discuss your specific facts and circumstances. Self-help services may not be permitted in all states or jurisdictions. The use of these materials does not create an attorney-client or confidential relationship. This video does not include information about every topic or issue related to these informational materials.
#IRS #Form1065 #PartnershipTaxes
For 2022 tutorials on Form 1065, see this playlist: th-cam.com/play/PLTdpzKOWNutTOfHNPsuXX7bX5SK687LVI.html
Hello Jason. Appreciated so much your clear presentation. I have 1 line item seeking clarification- Line 14c - Gross Nonfarm Incomen @ $541,000. I have researched high and low within your fact sheet and outside reources seeking to identify source for this entry. No doubt its a great learning experience but it is still not completed since I still cannot find an Schedule or Supporting Statement providing any trail. Look forward to hear from you
hELLO AGAIN... Type error regarding amount for Line 14c item , Gross nonfarm income. It is NOT $541,000 Rather it is $51,000 as you provided.
Thank you so much for all that detailed information you helped me file my first 1065 income tax.
Glad it helped!
Thank you so much for this wonderful video! One question why the interest income and other items are seperately stated and not included in page 1. Also the partners John and Jane how many 1040 returns each of them have to file( considering both residents of Delaware state) One is Federal return and one for Delaware state? 2nd scenario if one of them say Jane lives in Alabama. How many returns she has to file. Kindly reply Jason. Thank you so much in advance!!
This was a wonderful video on the How-To for 1065 forms. This is our first year in business and first year filling. We did not have an income this year and only minor start up costs. 2 partner LLC one with 51% and one with 49%. With zero being the in/out of this years filing. What changes and what is important/required to fill out. I have the 1065, B1, B1, and K1. Is the worksheet necessary this year? Mind you, we are a husband and wife and the only reason I hold 51% is because I will be the one doing this type thing and handling accounting so I have slightly more responsibility.
Thanks you so much
This is the best video about llc 1065
How to complete and what does each questions means.
Thank you sir
Thanks for watching! Glad it was helpful!
Very well explained. Thank you so much for sharing your knowledge. You just earned yourself a new subscriber here.
Thank you!
How did you calculated Gross non farm income $51,000 on Schedule K
i really really appreciate what you did. it is so cool. helps me a lot. I've been preparing EA exam and learning lots of regulations and laws. the explanation of each form gives me a thorough and clear understanding. thank you so much.
I'm glad it was helpful. Thank you for watching!
I’m a new EA and these videos are great!! So helpful. They close the fan between book knowledge and real knowledge. Thank you!!!
Where do you obtain the Federal Supporting Statement form?
Very informative...Thank you Jason. Now what if the ordinary business of the LLC is investing in equities for capital appreciation...say an "investment club" ran as an LLC. Would you still report capital gains on Schedule K and not on page 1 of Form 1065?
Thank you so much for this video! I had to watch it maybe 4 times but I am now almost finished completing my first 1065 and feel empowered having done it myself! Is there anywhere I can E-file the fully completed form without paying hundreds of dollars for all the bells and whistles I don't need or is sending it in on paper the only budget way to do this?
Glad it was helpful. If you fill out the forms by hand, then you are going to have to paper file them with the IRS. We always recommend using a tax preparation software package because that provides the ability to efile. There are many out there for business returns that hover around $100.
Thank you so much as always. Who decides the amount to distribute at the end of the year?
I noticed Jane and John took distributions in a 40:60 ratio. Do they always have to do this? What if John needs to take out money for personal use but Jane doesn't need money? If their capital weight changed, does it affect their profit allocation ratio?
I am wondering the same thing. I have an LLC where its set up so I make less than what I actually own in the business. Is there any info on this question??
@@squeegeebroswindows I've had the answer after I asked. John and Jane doesn't need to take distributions in any particular ratio. Ditch the notion of "ownership percentage", you don't need this notion unless you need to discuss who has a final say in making decisions. Instead, stick with 3 more useful notions: A. profit allocation B. capital accounts C. distribution. A is set by the operating agreement, and is reflected on schedule K-1 item J and K. A automatically flows into B and changes the value of B. Each partner's B is reflected on item L, which is only useful when you need to sell the company. C can be withdrawn from B in any arbitrary amount. B and C doesn't affect A.
@@zyin5960 So even though the percentages have nothing to do with them I can still put the correct amount for the capital contribution during year in L. And then put the amount withdrawn and distributions that was paid out to each partner correct?
@@squeegeebroswindows I'm not sure I fully understood you, but yes, contribution and distribution and profit allocation all goes into L. Btw you can leave J K L blank if you can leave schedule L M-1 M-2 blank, I believe.
The distribution amounts don't always have to be equal to the ownership percentages, but it should be consistent with the provisions in the partnership agreement, so check the agreement. There are also issues with allocating loses or cash in excess of a partners' basis, which can create serious problems. All allocations must have "substantial economic effect" to be respected under U.S. tax law. This is why agreements have Qualified Income Offset (QIO) provisions or Deficit Restoration Obligation (DRO) provisions. Always consult with a tax advisor if you have a complicated partnership agreement.
Can I have a template of the sheet at 12:24 ?
if there was something of private organization grant money were would that go ?
Grant money is generally included in gross income as revenue and ultimately subject to taxes, however, that is not always the case. If the grant income was tax exempt at the federal level, then it is reported as tax exempt income on Line 18b of the Schedule K. Always consult with a tax advisor to determine the taxability of the grant.
@@JasonDKnott thank you!
Hi Jason! thank you for such detailed video. I have a question. We opened the LLC (I'm foreign and my partner is US citizen) in the end of November 2022 and have no revenue or income in 2022. I've read in Instructions for Form 1065 that our company have an exceptions and we aren't required to file form 1065 because we have no income in 2022. We made only contribution on our bank account in 2022. Is it right? or better file this form anyway. Can you provide your piece of advice? Thank you so much.
Hi Jason. I’m a non U.S. alien, but created my LLC back in June 2022, the business has not started but it will soon. A friend of mine asked me the favor to include him on my LLC for other personal reasons but he will be out of the LLC soon. He does have his social security but no green card. How I’m suppose to present my 1065 with this situation? 0’s? And as a non resident still I have to present my own k1? Sorry to bother you…….great video BTW but my LLC has not sell anything! I just have the banco account and that’s it.
Thank you Jason for this very informative video. If a partner is 51% owner, is it entered on the form 1065 as 0.51 or .510? Thank you.
The value displayed on the K-1s and Schedule B-1 would be 51%. If you are preparing the return using tax return preparation software, it will generally require you to enter .51 to display 51% on the forms.
@@JasonDKnott thank you Jason.....you are the best!
Just a doubt-do you have state and federal k1s or just a single k1 for each partner?
Yes! It is a good question. This is just the federal Form 1065 & K-1s. Partnership tax returns & K-1s for states may be required depending upon the state the business is located and the residency of the partners. For example, New Jersey requires partnership tax returns & K-1s solely because one of the partners is a resident. Even if the business has no other nexus to New Jersey.
@@JasonDKnott thank you Jason,where can I refer more about partnership taxation including all the basics covered like permanent, temporary difference etc.i would like to connect with you online as well to improve my knowledge base on the same.
Thank you
Where to I submit this form to? I cant for the life of find any place on turbo tax, or any place that tells me where I send the form so I can get the K1s
Nice work
In Section M-1, shouldn't the final income be $47,585?
Not in this example. The final M-1 number on Line 9 is the overall taxable income or loss, which is Schedule K, lines 1 through 11. Minus the sum of Schedule K, lines 12 through 13d, and 21. See the "Analysis of net Income (Loss)" Section above Schedule L.
@@JasonDKnott yes thank you. I realized that as well.
Hi Jason, thanks for the detailed video. Are the $1000 contributed by Joe and Jane to start the company being considered part of the $85k of Gross Receipts/Gross Profit for the year? I guess in reality, did they make $84k + the $1k investment to get to the $85k for the year? Another way to ask it: If they didn't make any sales in those three months, would the Gross Receipts be $1k because of their contributions?
When owners make cash contributions to start the company, those amounts are not included in gross income, because they are equity contributions to the company. Capital contributions by the owners are reflected in the equity section of the balance sheet, and they are not included as income on the profit and loss.
@@JasonDKnott Thanks so much for clarifying.
is there any fees to file 1065?
There are no fees to paper file the return. We always recommend e-filing the return with an approved tax return software provider.
21:15
Confused me.
I'm glad I found your video after struggling with the online tax software result . Thank you so much for making this video to explain and show how it's supposed to be filled. It's really helpful for my first year filing.
Glad it was helpful!
Wow, Jason! Wonderful and amazing walk-through - thank you for taking time to share this information.
Glad it was helpful!
Thank you for preparing this Jason. This is the best overview of 1065s I've seen. I hope I find more from you on other ta subjects, like S Corps, and C Corps.
Dave EA
Thank you, David. Glad to hear the tutorials are helpful. Thanks for watching!
I'm really appreciated ur Video and from now on I'll follow and purchase Classes from the link to learn more about Tax Accounting. Thank you Jason very much!
You're welcome! Thank you for watching
Where do you find the attached statement forms. Like the form you used for statement #4 to identify other deductions for line 20 of page 1 on the 1065?
Hi Jason, may I know what tax software are you using? Thanks
We use Drake Tax to prepare our business and individual tax returns!
Awesome. Thank you!
You're welcome.
HI, DO I NEED DO K1 IF NO LOSS AND NO GAIN ON THE 1065 FORM
If you are going to file the Form 1065, a Schedule K-1 should be provided to each partner even if the amounts reported on the K-1 are zeroes.
Thank you for the wonderful video, but I have 1 Question. You said that charitable deductions & Interest Income will not go in page 1 of 1065, but those were in Book of accounts (Income Statement). So while reconciliation to tax from books of accounts (M-1) (Video Time at 19:00) charitable deductions & interest income should also be included in M-1 right? Because we are not considering them in the ordinary business Income & Expense.
I have a quick question regarding my multi-member LLC, which acts as a holding company and owns a subsidiary company with its own EIN. Since the subsidiary is wholly owned by the holding company, should the subsidiary be included on the Form 1065 for the holding company? Both companies have separate EINs, and while I'm aware that I need to file a Form 1065 for the holding company to issue Schedule K-1's to the owners, I'm unsure about the specific procedure when a subsidiary is involved. Would it be treated as a disregarded entity for tax purposes?
My company issued 1099's to contractors- does the sum of this go on page one line 9 (salaries and wages) or is it included elsewhere?
Also my company received a 1099-NEC for contract work it provided- where does this get included on the 1065 (is it included in the total of gross receipts/sales), does it it get reported on the K-1? any additional forms?
Independent contractor wages are generally not reported on Line 9, as that line is used for wages paid to employees of your organization. The independent contractor wages can be reported elsewhere on the return, usually Line 20.
@@JasonDKnott how does the 1099-NEC that my LLC received (we did independent contract work) get reported through the 1065? Does that income get rolled up into Gross Receipts? and/or does the specific amount need to go directly on the K-1? or is it include in the sum of ordinary business income? I'm unsure if the specific amount on the 1099-NEC needs to be specifically documented on the K-1 (pulled from the self-employment earnings). The back of the 1099-NEC states "if the amount in this box is SE income report it on Form 1065 and schedule K-1 (Form 1065) if a partnership, and the recipient/partner completes schedule SE (Form 1040). I have a 50/50 partnership
How come your total in terms of taxable income for both partners (given 60?40 split) give you a totally WRONG taxable income number? Please explain
I own a cleaning company and we collect sales tax. Where does that go on for 1065?
i have a cleaning company and we collect sales tax where do i put that on form 1065
HELPFUL ALTHOUGH ITS NOT COMPLETELY THE SAME AS 2022. DO I FILE K1 OR SCH C ON THEIR 1040 ALSO? OR AS LLC PARTNERSHIP ONLY THE 1065 IS FILED?
I followed the instructions carefully, but the page caught on fire and now my desk is ruined. What should I do?
I am looking for a tax preparer classes that teach mostly with videos and has certification with it and accredited
Loved the way you teach these material ❤❤❤
where is statement 4 (pg01)? is that an IRS supplied form?
Great video very detailed and informative How can I hire you to do my llc taxes?
This is by far the best tutorial I have seen on the 1065, thank you!
Hello. I filed 1040 in 2020, as a sole member for an LLC. 2021 (2/2021) I added my husband as a member, that being said, do I check the Initial return, seeing that this is our first time filing 1065? By the way, I have not applied for a new EIN for multi LLC members. Thank you!
Generally, a two member LLC is treated as a partnership for federal tax purposes and needs a Form 1065. For married couples that own an LLC, there are other rules depending upon where you live. We have a video that discusses the issue here: th-cam.com/video/mQ6pQKoVZlM/w-d-xo.html
hi Jason, your video was very helpful. I would like to know if I need to get an Itin number, I am not a Us citizen or resident. I am foreigner. The LLC is a partnership 2 members both foreigners. We have not generated revenues last year. Is a new firm. I know we need to fill 1065. However, There in this form when I should fill the members , the form solicites Itin or any. We got EIN. I have read that some LLC members do not need to get itin. I do not have a physical place or employee in US. the prospecting clients are outside US. Thanks
A foreign partner needs an ITIN if they are going to file a Form 1040-NR to report any U.S. source ECI subject to federal income taxes. If there is no ECI, then generally no need for an ITIN.
if your business is at a net loss, can you still take a qbi deduction?
thank you for the video Jason, If one of the partners is a foreign partner, Do we need to get an ITIN before filing the 1065? Thanks
The ITIN is not required, so long as all of the taxes are withheld at source. However, it is generally recommended to obtain an ITIN because the nonresident partner can file a Form 1040-NR and obtain a partial refund of the taxes withheld.
Great presentation! On page 23 of the 2021 Instructions for Form 1065, the section on "Meals" indicates that "...the partnership can
deduct 100% of business meals if the meals are food and beverages provided by a restaurant, and paid or incurred after December 31, 2020, and before January 1, 2023."
Yes! As part of the covid relief, they have made most meals expense 100% deductible rather than 50%. However, not all meals qualify for the new 100% deduction, so carefully assess which meals you have before deducting the full amount.
Thank you for the demonstration! one question where did you find the schedule k-1 statement A -qbi pass-through form?- i can not find it anywhere on the IRS Website it seams to be replaced?
The Schedule K-1s are found in a separate PDF on the IRS website. If you search for "Form 1065 Schedule K-1" you should find the separate listing versus the Form 1065.
Thank you very much. Could you tell me how to file a 1065 zero return? There was no expense or income.
If you have a return with no income or expenses, you can still follow the procedures in this video and include all required schedules. However, if your partnership entity has anything unique, such as non-U.S. owners, non-U.S. bank accounts, or investments in foreign entities with no activities, then your return is much more complicated. Under those circumstances, I would recommend consulting with a tax advisor.
Where did you get the "Federal Supporting Statements" pdf at? Or did you make the outline yourself?
Those statements were generated using the tax software package used in the video. Most software packages will automatically generate the supporting statements and attachments. If you are preparing the Form 1065 by hand using forms downloaded from the IRS website, you will need to create your own supporting statements and schedules.
Jason D knott. I really appreciate you for you gave me a good knowledge about preparing form 1065
Thank you for the kind words. I'm glad the video was helpful.
Excellent
You do a great job explaining how everything ties into the forms. Really helpful, Thank you for the video! I have a QN regarding the partner capital. Would you have to do anything different on the Reconciliation of partner accounts if one of the partners ended with a negative capital account due to taking out more withdraws than contributions plus netincome? or this only affects the next year beginning capital balances and not the tax return
Thanks for watching! It is definitely possible for a partner's capital account to be negative. The return can still be prepared in a similar fashion, only the partner capital account in Item L on the K-1 is going to be negative. However, you need to review the terms of the partnership agreement, as most agreements will have special allocation provisions to prevent losses from being allocated to partners with negative capital accounts, such as the qualified income offset (QIO) provisions.
Thank you for such awesome explaination but i have one question, that If two brothers belonging to Non USA country then Should they be using K-1 for their Income reporting as well and If in case They have not yet made any sale so will they file a nil return if yes then what types of forms be filed by them,,,,, Please Answer
Great video! How was the $16,000 distribution amount figured?
The $16,000 is the amount of cash that was distributed to the owners as a capital distribution. Jane received $6,400 in cash draws and John received $9,600
really solid. this is the type of video that gets you a following. subscribed. liked.
Thank you! I'm glad it was helpful.
want to thank you again. you are awesome!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
You're welcome!
Very helpful! Question: was this pdf generated by software or filled by hand?
Thanks for watching! This tutorial was using Drake Tax Software, so the pdf forms and all attachments were automatically generated using the software.
Thank you! This helped me so much for a return I had to do for an assignment!
Glad to hear it was helpful. Thanks for watching!
How do you get the statement form for supporting documents?
They were generated using our tax software program, which is Drake Tax. If you are preparing your own form 1065 by hand, you can create your own supporting statements and attach to the return. However, we highly recommend e-filing returns and not paper filing.
@@JasonDKnott thank you for your response. I had created my own supporting statement form. Your videos have been very helpful!!!
question 29 you marked yes but on the instruction's it says A partnership isn't eligible to elect out of the centralized partnership audit regime if it is required to issue a Schedule K-1 to any of the following partners. You marked that you had to issue 2 K-1's so wouldn't the answer be no to that question since a K-1 was issued.
Hi, thank you so much for this video. It was very helpful! Where do you fill out the expenses regarding ads, office equipment, office expenses... etc?
Expenses that don't already have their own line item on Page 1 of the Form 1065 (Lines 9 through 19) can be added as other deductions on Line 20. You should attach a supporting statement with the details.
Do I send everything to the same mailing address for manual filing?
I thought the partner capital accounts reported in Schedule L does not need to tie to the ending balance in the M-2 if the Schedule L is based on internal book balance sheets and the M-2 appropriately reported on tax basis?
Yes, it is no longer a requirement that the accounts tie. In this example, the balance sheet per books is tracked under the tax basis method, so it will match the capital account balances on the K1. If your balance sheet per books using GAAP, IFRS, or another method, then the capital accounts may show a variance from book.
@@JasonDKnott thank you for the quick response! Your videos are very helpful and I appreciate all of your hard work to post these!
thanks a bunch
Thank you for this great video! I just have one question, why the computers are not listed on Schedule L as assets?
The computer equipment purchases individually fell below the de minimis safe harbor rules for expensing property under Treas. Reg. Sec. 1.263(a)-1(f). So, the partnership elected to expense the purchase of personal property, rather than capitalize it on the balance sheet.
@@JasonDKnott Thank you so much for your answer! If I use bonus depreciation on the computers instead of de minimis safe harbor rule, do I need to include them in Schedule-L assets?
How did you draw up the supporting statements for line 20 other deductions? I can't find the template
The supporting statements schedule was generated using the tax software used in this tutorial, which is Drake Tax. There isn't necessarily an approved template on the IRS website, you can simply make your own schedule if you are paper filing the return. However, I would highly recommend e-filing tax returns as they are more accurate.
@@JasonDKnott thank you!
Hi! How are you getting to your $51k on Schedule K line 14c? Well the 28,551 on 14a as well... seems to be the 60% of 85k and the 28,551 is a mystery to me.
If you look at the 1065 instructions, there is a worksheet called "Worksheet for Figuring Net Earnings (Loss) From Self-Employment" that shows how to calculate that number. I was trying to figure that out too
The $28,551 is 60% of $47,585.. Remember, the $85,000 represents revenue generated from operations. You have to remove income and expense items that are not incurred during the normal course of business. Look at the ordinary business income on schedule K. The $51,000 comes from the $85,000 x .60 = $51,000.
@@sovereignruler To add to this question- 60% is John because he is an general partner- correct? If you have two general partners both at 50%- how does this change the calculation? Is it now 100% of the "47,585" (14a.) and for (14c.) 85,000?
thank you very much, this was great..
You're very welcome!
👌👌👌
Thanks for watching!
Where is the 51,000 from on line 14c of schedule k for gross nonfarm income?
Gross revenue of the partnership is 85K. 60% of 85k for that one partner is $51,000
@@JasonDKnott I'm struggling with this one - I get 14A as reporting of the partnership's net income, but why are we reporting gross non-farm revenue in 14c? I've always just seen the net income go in box 14 and I would think the self employment tax would be based on net income, not gross revenue.
Wonderful? Could you please upload the work sheets for better understanding?
This is some good game. Thank you Jason.
Glad it was helpful !
Awesome video! 😎
Thanks!
Thank you so much for this great tutorial. I learned so much. I have a question. Under the self employment section, why is the amount for code c (non farm income) calculated before deductions? Is this because the self employment tax must be calculated from the gross? I do a lot of schedule C's and Generally, the amount subject to self-employment tax is 92.35% of your net earnings from self-employment. You calculate net earnings by subtracting ordinary and necessary trade or business expenses from the gross income you derived from your trade or business.” Is partnership income different?
If the partnership met all the conditions except they elected out of the audit regimen, does that negate even filing a request for waiver for late filing of their partnership return? Since 2006 when the husband and wife partnership was created, they have rountinely placed their partnership and individual tax returns on extension. Their bookkeeper is unable to process all the information for filing until August of each tax year. They have never failed to file their returns. Usually all extensions are timely filed for both Federal and State. For 2021, the Federal extension fell through the cracks . The state extension was filed and accepted but failed to check for the acknowledgment by IRS for the Federal Extension immediately until days later and contacted both the tax program and IRS immediately. Was told to wait until the return was filed and request a waiver with no guarantees. Appreicate your response/.
Hello Mr. Knott. In the 1065 form for a restaurant , must I add the collected sale taxes into the gross business income? or should I remove the collected sale taxes before I claim the business's' gross income? If I add the collected sale taxes into the gross income, in which line of the 1065 form should I deduct the collected sale taxes? Thank you!
If I had initially formed a single non resident alien member LLC, requested an EIN and several months later I decided to turn it into a two member LLC (partnership) should I have requested a new EIN after that change?
Jason Thank you for the very informative video. One question is we have a 50/50% General Partnership and one of the partners cash distribution equaled a higher percentage than their 50% interest is that reported on the K-1 as well? and how does that effect the other partner?
Great video!!! What forms do I need besides this one if I'm a daycare provider For itemizing and depreciation? Also where on this from do I include for the relief coronavirus Grant funds that I Received?
My wife and I are each 50% members/owners of our rental property LLC. Do we have to include form B-1 with our filing? I think so because we each are “at least” 50% owners. Your videos are well done and instructive. Thanks!!
Hi, thank you for your K1 video - very helpful, I have a question, is K1 reported redemption taxable?
Great video. I'm using to complete a 1065 as I'm watching. It's helping me to clean up a poorly done prior return.
Thanks so much for the video. Is there anyway you could provide some guidance on how a partnership elects s-corp status?
Do you do individual training? This was very helpful
Excellent presentation!!
Glad it was helpful!
Nicely explained and Can you please share a sample filed 1065 pdf ?
Thank you for taking the time to walk through this!
The forms themselves aren't difficult, it was figuring out what goes where. I have a simple spreadsheet from the first year of business, with 6 lines of expenses- but it was hard to figure out what the terms mean on the 1065 and where the numbers come from- so your switching to the P&L/ Balance sheet cleared it up very much!!! I didn't understand the equity and liabilities, etc... but now it all makes much more sense!
thanks so much for your professional instructions.
By chance have you made the expense spreadsheet available?
Thank you for watching! The workpapers are not yet available online, but we are creating a database that will have free access to various workpapers for partnership,s corporations & S corporations.
I started my LLC partnership last year. I did not have any expense or income in 2021. Do I need to file an initial 1065 if I didn't have any expenses or income this year? Thanks!
If you formed an LLC taxed as a partnership, our recommendation is to always file the tax return. We have a video that discusses this issue in more detail here: th-cam.com/video/GvHacjwBzfs/w-d-xo.html
Thanks so much! Very clear explanation 👌. The only thing: I don't know where is coming from $51.000 on Sch K line 14c or K-1 line 14?🤔
Multiply 85K with 60% of John's Share
My family and I started a natural body care company and we make soap, body butter and scrubs at home. Where would be add all our cost for materials purchased to make the products.
I would recommend watching our video on cost of goods sold (COGS) reporting for a company. Can find our video here: th-cam.com/video/YSMQaBTfwDc/w-d-xo.html
Great job explaining; however, you did not mention line K on Form 1065. Can you explain how I know if need to check box 1 or 2 or both?
Both boxes were unchecked as this partnership wasn't making either of those elections.
@@JasonDKnott Thanks for your reply. Would you be able to explain these elections in plain English, as I don't understand the IRS's explanation?
Thank you so much for taking your time to explain. You deserve millions of subscribers :)
😀
Thank you! I appreciate the kind words