Get the IRS 1065 - Schedule K-1 2019-2020

what is form 1065 in my schedule k-1 what tax form does my partnership or LLC business need to file Aloha friends Amanda here welcome to the business finance coach where Im simplifying accounting taxes and the technicalities of business so that you can know that youre doing things right and grow your business and investments if youre new to this channel be sure to hit the watermark in the bottom right corner of your screen to subscribe while still watching the video all right now back to this video where Im gonna be simplifying who files form 1065 what a partnership has to do in an LLC and the schedule k-1 that you will get for your investment in a partnership or LLC with more than one member so that really is the key whenever you have two or more people who are creating a business together you have a partnership when you have two or more people in an LLC together youve created a partnership for taxes and theyre also our partnership businesses that you can form at state levels just like LLCs but most people are doing LLCs these days because theres limited liability for everyone involved now once you start a business with other people you have a partnership for taxes and you have to file the partnership form 1065 and the partnership doesnt actually pay taxes other than in some rare situations but generally the net income of the business and so the income and expenses flow through to you as a partner on schedule k-1 and then you report schedule k-1 on your personal return and your percentage of the business income and expenses flows through to your return and thats why the different activity is broken out in part three like this and of scheduled K this breaks out different fences from page one because the activity isnt taxed at the partnership level and its treated however it would be treated at your level so for example if you have charitable contributions then they flow through to you as a partner and you can only deduct them as an itemized deduction instead of them being deducted from your business so everything flows through now there certainly is a big difference with an S corp and but you still have a schedule k-1 with an S corp and a trust so if you see below your schedule k-1 it will say the type of business form 1065 so again you see well go a little more detailed into this gross receipts from the business returns and allowances you only enter returns if it was included in the sales and then cost of goods sold you only have to do cost of goods sold if youre a bigger business it can be better to help you actually understand how profitable you are if youre selling products if you dont have products you will not have cost of goods sold at all cost of goods sold is only for products but if youre not using a cruel accounting method which is asked for right here at line H check accounting method cash or accrual then its really hard to do that because you probably dont have the information cash basis just means that you record income when you...