4

That's really not something that can be answered based on the information provided. There are a lot of factors involved: type of income, your wife's tax bracket, the split between Federal and State (if you're in a high bracket in a high income-tax rate State - it may even be more than 50%), etc etc. The fact that your wife didn't withdraw the money is ...


4

You should have a partnership agreement of some sort. The reason partnership agreements exist is so nobody can change the game because of the outcome. I'd say the most typical partnership agreement is that everyone gets an equal cut, meaning that everyone also makes an equal contribution. If you have start up expenses of $10,000, you'd each contribute $...


3

You don't need to submit a K-1 form to anyone, but you will need to transcribe various entries on the K-1 form that you will receive onto the appropriate lines on your tax return. Broadly speaking, assets received as a bequest from someone are not taxable income to you but any money that was received by your grandmother's estate between the time of death ...


3

California taxes worldwide income of its residents. So it doesn't matter if your K-1 is from California or from Connecticut if you're a California resident. Your expectation seems to be correct. State taxes are often the weak point for these programs, especially California which has quite complicated tax laws. If in doubt - get a CA licensed tax preparer (...


2

You received K-1 for the States in which the LLC was operating and had income from. You should check if your personal income from these states (income reported to you on the K-1s) puts you above the filing threshold in these states - if so then yes, you should file a tax return there. You would probably be filing non-resident tax return only for the income ...


2

It would appear that you are not actually "equal" partners. You have differently valued interests and those values fluctuate based on individual performance. The TurboTax advice is simplified for entities that don't track interests relative to partner inputs. IRC § 704(a), partner's distributive share is set by the partnership agreement, and § 704(b), ...


2

Why would you file four K-1s for each partner? You file one K-1 per partner, on which you report the total of income attributed to that partner. It shouldn't and cannot "vary". There's no variables here, the income you report is the income already earned and attributed to that partner. What's there to vary? How you decide the attribution of income is ...


2

I'm not sure why you think that it matters that the distribution goes to an S-Corp vs an individual tax payer. You seem to think it has any relevance to your question, but it doesn't. It only confuses your readers. The situation is like this: LLC X is deriving income in State #2. It has two members (I and S) residents of State #1. Members I and S pay all ...


2

The two quotes from TurboTax cover the 2 basic flavors of trust. The former, with its own TIN, thus needing to file a return and account for realized gain or dividends, and the latter, a pass thru entity. I am a trustee for both kinds. The one with a TIN has me filling out the 1041 and the other required forms, and effectively passing it all on to the ...


2

I think you did the right thing. The brokerage's instruction to use Form 8949 because the basis wasn't reported sounds like a generic statement that doesn't take into account your receiving a K-1 for that ETF. The instructions for Form 6781 say that the gains should be listed on Schedule D lines 4 and 11 (the mention of Form 8949 is for those filing "other ...


1

The K-1 generally supersedes the 1099 for MLPs. Look for a "Sales Schedule" included with the K-1, listing the basis and sale proceeds. See also this question.


1

I talked this over with a relative who is a CPA, and she said that as long as the numbers end up on the Interest and qual/nonqual dividend lines on the 1040 eventually that it should be okay. So my fix for the moment is to tell the software I have a 1099-INT and a 1099-DIV from the trust, and enter the information on the appropriate lines from that. (I don’...


1

No, this income cannot be used to fund an IRA because trust distributions are not earned income. IRAs can only be funded by earned income due to employment. Even if you have some tax liability (from accrued interest, for example) from the trust distribution, it’s still unearned income.


1

Typically, the K-1 comes from trusts whose terms dictate distribution of earnings by the trust during the year. The K-1 information will flow right to the beneficiary tax return. The second return you describe appears to retain its earnings, and let beneficiaries know about such activity as a reporting activity, but the trust itself would have filed the ...


1

Well, you won't be double taxed based on what you described. Partners are taxed on income, typically distributions. Your gain in the partnership is not income. However, you were essentially given some money which you elected to invest in the partnership, so you need to pay tax on that money. The question becomes, are you being double taxed in another way? ...


1

Just type in the forms as they are, separately. That would be the easiest way both to enter the data without any mistakes, and ensure that everything matches properly with the IRS reports.


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