1065 50/50 partners

[Pacun]

LLC with 2 partners share losses and profits 50/50. These are 2 acrobatic dancers.

Each time that a partner performs, he gets paid $200 and the rest goes to the pool. At the end of the year, one partner made $3,000 more than the other partner. How do I report this on K-1? If I leave the 50/50 sharing, each gets equal amounts on K1.

[mcb39]

LLC with 2 partners share losses and profits 50/50. These are 2 acrobatic dancers.

Each time that a partner performs, he gets paid $200 and the rest goes to the pool. At the end of the year, one partner made $3,000 more than the other partner. How do I report this on K-1? If I leave the 50/50 sharing, each gets equal amounts on K1.

Guaranteed Payments to Partners; which are based on their active participation. Deductible to the Partnership, but taxable to each Partner for his pro-rata share.

[Pacun]

Guaranteed Payments to Partners; which are based on their active participation. Deductible to the Partnership, but taxable to each Partner for his pro-rata share.

Does it mean that I will have to file a Schedule C with the amounts from K-1 and guaranted payments?

[Alpha]

No the K-1 amounts including the guaranteed payments go on the Sch E and are subject to SE

[mcb39]

Does it mean that I will have to file a Schedule C with the amounts from K-1 and guaranted payments?

You put the total amount on the Sch K and then split the amount per partner on the K-1 Guaranteed Payments Line. It will automatically go to the back of the Sch E and be included in the SE income from the Partnership (50%) or adjusted by the loss if there is one. Good Luck

[Pacun]

Thanks.

I said schedule C by mistake because on the back of my mind I was thinking about SE taxes. I have done this 1065 for a couple of years but this is the first time they are not spliting evenly. Thank you again.