LLC Partnership Tax Basis & Basics: Form 1065, Sch K-1, Capital Account, Inside Basis, Outside Basis

This video covers the basics of LLC/Partnership Taxes for form 1065 and the Schedule K-1. I start out explaining the tax forms and how to do partnership accounting records (and show my spreadsheet template). I connect the dots to show simplify understanding the Capital Account (on schedule K-1), Tax Basis, and Outside Basis & Inside Basis, including what the business needs to track and what members need to track on their own.
Download the free business spreadsheet template (for basic accounting, quarterly taxes & end of year tax write-offs), yes for FREE (with a free e-course) here: www.amandarussell.mba/getthebusinessspreadsheet
Check out the SMALL BUSINESS SCHOOL (which is now individual courses you get buy based on the challenge/topic that you need help with): www.bizschool.coach/courses
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[@videosabia]

You go girl. Very well explained. Been doing K1s all my adult life and I wish there was KZbin when I first started. Ha!

[@rubypurplenomz]

you explain things so well. much easier to understand than other videos i've watched

[@mattysean253]

your videos are keeping me employed

[@businessfinancecoach]

Don't form a partnership or Multi-Member LLC is the take away! be a sole proprietor or LLC and work with me in my super affordable program to setup your business -- you'll be on your way!

[@candyguinn212]

So pleased that I found your videos! My husband and I recently established a PLLC through our state (both medical providers). However, I, essentially, will be the manager and employee. He has employment through another clinic. From what I’ve gathered, seems that we need to amend the articles of organization and only have one of us as a member.. Is that correct? **Hoping to take your course if it is still available.

[@bigjesse153]

I was just randomly searching through youtube for help with direction and information. Bam! your video popped up, not to mention you had all likes and no dislikes so I had to watch the videos. I'v been in a little bit of a tax jam and had to hire a tax Attorney. Recently my bookkeeper quit on me so that forced me to take over most of the bookkeeping etc. Hoping I'll continue to pick up some knowledge with your videos, so I can move on with my current situation. Thank you for the great videos!

[@rickeyhughes7380]

Hello, Miss Amanda. This is Rickey Hughes again. I have just watched your most recent video. I think you have explained it well, although I have never done accounting for partnerships before. I may have to watch your video again; and, if you have more upcoming videos about this, hopefully I will watch them also. I am still doing small business bookkeeping and accounting; and, I don't know if doing accounting for partnerships would apply to me. However, I would like to learn more just in case. Thank you so much. I look forward to hearing from you again. In the meantime, I trust you will keep up the good work in what you are doing.

[@kemi28meek]

Thank you so much for your explanation I am fairly new business owner and is going into a partnership, so your info was helpful. Thanks again.

[@aurora571000]

This explanation was very clear and well-organized. Gonna print those spreadsheets off right now. I have been struggling through my textbook’s descriptions for partnership taxation, esp how the basis is figured, along with ‘really fun’ details and exceptions. Thanks, subscribed!

[@teknotech]

Thanks, Coach!!! Some of this even makes sense, after you explain it, of course.

[@businessfinancecoach]

😂

[@sharimccall6991]

where do I get the member/partner inside basis, outside basis & Capital Account calculation worksheet & comparison download

[@b.u.bbybeauty]

Ughhhh why are you so amazing! 🤣 Answering all our questions

[@damionbrumfield5923]

Can this be done with TurboTax? I’m in the middle of this and it’s so confusing because I can’t actually see the form numbers to know if I’m doing this correctly. Love your videos. By far the easiest person to grasp the information from. 🙏🏽Thank you for all you do!

[@ichiulucero4396]

We are a couple who own an LLC, should it be single-member LLC or multi-member LLC

[@weozol4065]

do you leave the questions empty or put a zero for things you dont have? good vid thanks

[@brianstevens1962]

Prefect presentation as always. Seems like I should be paying for all this great advice I kinda feel a little guilty.

[@businessfinancecoach]

Well your comment is fabulous!!! Thanks :)

[@brianstevens1962]

Just being truthful,You can't say that enough these days, about a great thing. So when a true service to the community is being handed out through a service, And that said giver of knowledge, has obviously put in there own time, effort, labor and money to give out free to all, as a community service, well it's only right that said person should be acknowledged for said efforts. Just wish there was more I could do for you. But if that were the case. I wouldn't need to use your service all the time because I would be as smart as you, and If that were the case, I would be your competition, and from what I seen of them, umm I really don't want to be that guy, plus I wouldn't enjoy watching your videos, So what this is boiling down to is, I would be hurting myself to be as smart as you, so I think that makes me selfish right,. umm probably. But truth is, you make it easy for someone to get there, if they try. But me personally I think I would like to just stay a little on the unknowing side, that way I Can be selfish and still have a need to watch your channel. So really your Great and I'm selfish. And that would mean maybe I should see a shrink.? I think..🤔? Well that's probably not a bad Idea anyway😲🙄😅😹, I Think all that actually makes some kinda since right..? I don't know. 😆😹😁 Lol. Don't even ask me where all that came from? way to much Folgers this morning,i think 😲Buy the way keep up the good work we need you.🙏🤗 Now I gonna go look for a shrink. 😬🙄😹😹

[@jamescollins2638]

This was great. Thanks for making this.

[@madongoya7135]

Hi Amanda, I have an LLC with two members, I have done a lot of expenses but haven’t generated any money yet, do I have to file taxes for it?

[@krystalfigueroa2852]

What service do you recommend for filing a 1065? I have been using FreeTaxUSA.com for my 1040, but I'm not sure where to do my business taxes. Question: My husband and his brother filed and formed a Partnership LLC with Texas. My husband is the only person who has funded the business. The business has not received and income, but has accrued a few expenses. In 2019, the business had a loss. Is it possible to have a partnership with one member owning 100% since there was no business activity or investment from the other member? Would you file as a sole member LLC on your federal taxes or do you still need to file a 1065 because when you filed with the state, you declared yourself as a partnership LLC?

[@ctownsend3851]

Hi Amanda! How does this work if the owners file a joint tax return assuming they are an LLC partnership?

[@WenSaiPanther]

You have everything I wanted to know. Now I have more questions and ready for your training.

[@aboronomaknyarko6196]

Thank u very much. Good explanation but how can i get your spredsheet

[@gost3961]

hank you for the video but what if i win the big lottery --am i free from tax ? with this account !!!

[@sofreecreations1007]

I have a Mac, Which Software should I use for simplest multimember LLC tax declaration? We have online stores in etsy and shopify.

[@markjaret4731]

Great information. Thank you. Do I have to file taxes this September 2020 if I just incorporated 3 months ago, in June 2020 to be exact?

[@BrosCrypto]

Are 1065 free to send to IRS or is there fee they require in form of Money Order prior to sending it through the mail? And which IRS should i sent them from Ohio?

[@dannyleblanc4515]

Thanks for the great videos! I don't see a line on the 1065 form for initial capital investment into a business. How is that accounted for on the 1065 form?

[@carloslopezescanez9581]

Hello, We are two guys from Spain, with residence in Spain, who we have a LLC in New Mexico created on 2019, Not ETBUS, 50% owned each partner, so we need to fill out the form 1065 and k1, by July 15th, but I was reading that we need the ITIN for each partner. We really need it? Thank you Best Regards

[@slimeispassion3911]

Your video was informative and wonderful, how can I get your spreadsheet

[@vin.handle]

Can't single member sole proprietors choose to file as S Corporations? Or, is it just limited to Partnerships?

[@allisonkirchhofercpa3060]

Hi Amanda. Thanks for this video. I have a question related to reconciling a partner's K-1 to their capital account. On the Partners Capital Account Analysis on the K1, you say in your video that retained earnings are not allocated to the capital accounts. Is this always the case? Or just when Tax Basis is selected? Thank you!

[@zlater84]

what if you have partnership with someone from another country, how tax will work?

[@andyjohnson7121]

So, it turns out that a statement regarding insurance and being sued is a scare tactics to see an attorney. This issue is for your insurance company and not for you as a LLC pursuer to worry about

[@nataliamartin6411]

Where can I download/purchase the partnership basis worksheet, and balance spreadsheet?

[@ajrago]

@Natalia Martin - I was just wondering the same thing (4 minutes after you were).

[@DameTryvHJ]

Great vid!

[@ricardogauna2800]

Do you still have the business plan template challange?

[@gemini22581]

WAIT ...where is the basis deep dive video? My questions is if I have contributed $5000 for a 50% partnership, can I use this 5k for expenses such as development cost paid to someone to write code for my app? If yes can I take this as a deduction on my personal tax to decrease my taxable income?

[@businessfinancecoach]

Well - maybe - but no, not that way! First, if the business hasn't "STARTED" - then it's all startup costs and nothing is deductible (YET). Otherwise - Income minus Expenses = net income. The net income flows through on 1065 to each partner/member - so you might get a loss from YOUR SHARE of the business net income/loss, if it's a NET loss situation. Then, yes your share of net income/loss does decrease your taxable income. But NOT contributions. Contributions increase your basis (so does the amount you are taxed on or it decreases basis if it's a loss).... YES - you are taxed on your share of the business net income - NOTHING to do with the cash you take out of the business or not.... Check out the following videos: 1. for BASIS - this video 14:30 2. Startup costs - (shorter version) kzbin.info/www/bejne/qqDXn2SXeLOEkNE (deeper) kzbin.info/www/bejne/eWHQe6draManfrM 3. Owner pay - kzbin.info/www/bejne/Zoezl3x8fK-sopI 4. Tax strategies for owner pay - kzbin.info/www/bejne/rJObgGmBbr2im7c Hope that helps!

[@taurusallen3854]

what if my partner signs over their shares to me how do i file for 2019

[@gobie23]

do you have a vidoe on QBI?

[@austinmontgomery9884]

Not seeing the Balance sheet on the downloadable file. Is that not included or am I not looking in the right place?

[@businessfinancecoach]

Hi Austin! The balance sheet and automated templat is part of my Master Your Accounting & Tax Course, which you can purchase here: www.bizschool.coach/18stepcourse The Basis spreadsheet template (which is in the video you commented on) is part of my "Paying Workers & Owners" course, which you can register for here (plus there's more for p-ship vs. s-corp): www.bizschool.coach/payingownersandworkerscourse

[@businessfinancecoach]

The free "Business Spreadsheet Template" (which it sounds like you downloaded) includes exactly what it shows in the opt-in page - a month-by-month income statement (plus some daily/monthly worksheets if you prefer to add those in), a quarterly estimated tax worksheet and an end-of-year tax totals worksheet (which totals up all of your income and expense categories). Plus there is an LLC edition with a basic bank reconciliation. Everything is covered in the training too!

[@bakhtiyorkuliev5293]

Thanks.

[@marksibert305]

Although you described the money in and out of the partner ok, I was looking for how to post partners, and investors into your spreadsheets, but didn't see anything. What did I miss?