This is only GENERAL QUESTION
I have transferred K-1 info to TurboTax. My refund substantially decreased after that because I have to pay taxes on investment income never received.
I did not sell this stock and own for 3 years and pay taxes each year... All I received was small distributions. (K-1, box 19, A) But taxes to pay for investment income (box 20, A) are much bigger. Even with consideration investment expenses (box 20, B.) No loss this year is shown in K-1. Capital account is up slightly this year per K-1.
My GENERAL QUESTION:
Will I have any money return after I sell stock in a future or I have to pay income tax only for income never received?
Thank you for any answer
Mike

Hi,
5 Jan 2008 ... What counts as compensation income that allows you to make IRA ... In this case, the partnership or LLC should provide you with a Schedule K-1 each year ... you can't include investment income in your qualifying income.
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melkinny

Hi,
What are the advantages of forming an LLC (limited liability company)? ... taxable profit on Form K-1. In other words, the LLC itself does not file taxes. ... share of the bottom-line profit of the LLC is considered earned income, ... The entity we were forming will be seeking outside investment.
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melkinny