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Showing results for tags 'income'.
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Hi to All, In calculating the potential maximum contribution for the partners in a LLC, which number on a K-1 for Form 1065 is used as the equivalent of a regular employee's W-2 wages for purposes of calculating a contribution? We are working on a plan where a prior administrator in past years has used Item 14A, "Self-employment earnings (loss)" as the magic number for the year upon which to make calculations. We'd like to know if this is the correct approach. Maybe I should clarify that Item 14 does not automatically come with the letter A attached. Whoever prepared the form has put that in there, which according to the list of codes, means that the number is ""Net earnings (loss) from self-employment". Thanks as always for your comments.
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Hello, Based on a unique situation that I never experienced before, am trying to figure out what to enter for Line 8(b). Scenario (with mock numbers but that captures the scenario). Starting Balance - 300,000 Contributions - 10,000 Dividends/Interest income etc. - 5,000 Ending Balance - 290,000 (there was loss in value of assets in the plan). So, question is, on Line 8(b) should I enter -25,000+5000= -20,000, comes from 25,000 loss in assets values and 5,000 income from Dividends/Interest? Then starting balance of 300,000 plus 10,000 contribution = 310,000 with loss of 20,000 leads to Ending Balance of 290,000. Thanks,
