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Financial Planning / Tax Strategies
|Subject: K-1 form question||Date: 4/5/2013 2:16 PM|
|Author: tedhimself||Number: 118294 of 120415|
A fairly large number of Wife's extended family leased a piece of land to an oil company in 2012. One member of the family who is a lawyer set up an LLC.
To keep the math simple, wife's share of the total rental in 2012 would have been $1,100, but the lawyer only sent us $1,000 in 2012 because he is withholding this amount from each member until we get a problem settled with people who contend that they should also be members of the LLC.
The lawyer sent us a K-1 form (1065). When I fill out my taxes according to the entries on the K-1, I find that we are being taxed on the $1,100 dollars instead of the $1,000 we actually received.*
This doesn't seem right to me. There is no assurance that we will ever receive the missing $100.00. I'm wondering if the K-1 was done correctly and how we should handle our taxes since April 15, is getting very close.
*(The lawyer, who is not a CPA, is quite certain that we owe taxes on the $1,100)
How should we proceed?
Ted in Texas - a community property state.
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