Veritax and Sea-Tax

[JoshinNC]

How do you folks who do securities and insurance work report this income? Last year was my first year as a licensed broker, and I reported all the income a Sch. C with very little in deductions to offset the income. My wife and I run our office as a general partnerhsip, with her as the GP and I am a limited partner.

As my income from these activities is reported under my social on a 1099 I would not be able to report this as income to the partnership, correct?

Pretty bad when we have to ask questions about our own stuff, huh?

[lbbwest]

SE Tax

Whether it's reported to the partnership or on a Schedule C, it's still going to be subject to SE. I don't understand how you can be a limited partner if you are active in the partnership. The IRS computer is going to be looking for the gross amount of your earnings on your 1040 to match to the 1099. The quick and easiest way is to report the gross on the Schedule C and a deduction for the same amount and pick up the gross income on the 1065.

[Roberts]

agreed

Unless there is substantially other information you haven't disclosed, I don't understand why you set up a partnership the way you did to handle a business activity where a 1099 will be issued to you. Maybe you need to speak with a professional )

[JoshinNC]

I didn't set up the Partnership for the securities business.

Unless there is substantially other information you haven't disclosed, I don't understand why you set up a partnership the way you did to handle a business activity where a 1099 will be issued to you. Maybe you need to speak with a professional )

The partnership is our tax and accounting business. The financial advising is a seperate activity that happens to be performed in the same office, but under a different name (mine).

[veritas]

I report finacial services

on a Sch C.

[jasdlm]

I deposit all my commissions into an account in my name and then transfer them to my S-Corp. I do a schedule C every year where I include the commissions as Schedule C income and then take a deduction for the exact same amount with a statement attached that says 'to __________' (the tax id of my s-corp). I claim all the income in the s-corp. I pay myself a reasonable salary out of my s-corp. I also have several employees, HI plan, rent, etc. My schedule C was examined in 2002. Sent a 2 line explanation and referenced the s-corp return. Received a letter back saying thank you, all is well.