How to enter correct amounts schedule K form 1065 for forex income for multi member llc(not a c or s corp

Forum|Forum|3 years ago
April 14, 2023
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Asking how to report forex income & expense on form 1065(basic LLC multi member in USA)

In past years I reported forex income using Section 1256 on form 6781 with my 1040.

This year my forex income will be thru an LLC with no 1099 available(brokerage is in Canada).

I will have an annual statement showing forex gains, and will have one operating expense item. There will be no other income or expenses or deductions.

With Turbo Tax Business I can see where to enter 1256 income (Sched K line 11, type C)

Is the amount on line 11 the net income (ie annual report income minus ordinary operating expense) or gross amount and if gross where do I enter operating expenses?

TurboTax Business Windows

vorlonjbAuthor

I checked with Green Trader Tax and reply was that due to 2017 TCJA cuts, no expenses related to Investor income are deductible. Expenses can be added to schedule K for LLC's for state taxes, but aren't deductible for federal income tax. Gross amount has to be reported as taxable income.