K1 filing with no income

Forum|Forum|3 years ago
February 2, 2023
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My husband and I am limited partners in my son's LLC. It is set up that he owned 100% of the profit and losses, and 80% of the capital. My husband and I own 20% of the capital. In Turbo Tax, we allocate the income based on the profit. This creates a K1 for us that has no income on it. Do I have to record and account for this K-1 in my taxes?

TurboTax Home & Biz Windows

Vanessa A

No, if there is no income or loss on the K-1, you would not be able to include it on your return. It would generate an error if you tried.

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NS371Author

Thanks for the response, but actually I don't get an error. It just lets me go thru it, line by line, entering 0. It's not a big deal, just a lot of questions to address if it's not needed.

Vanessa A

It is not needed.

Generally, the errors do not occur until you are ready to submit and it does the final check. Either way, you do not need to include it as it will not make a difference on your return since you have no income from it.

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