The money is saved in llc checking account and never used unless it’s for business expense like buying materials. Both me and my husband don’t draw salary. Do we still need to file any tax forms or pay taxes on it?
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answered on Jan 14, 2024
If the partnership has reported income( falls within the Income definition within IRC), it should be reported on the annual 1065 partnership return. Based on the partnership income/expense allocation agreement, that amount will be reported on an individual K1, which will then be reported on your... View More 
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answered on Feb 1, 2024
Ordinarily, canceled debt is considered income during the year in which it is canceled. Expect to receive a 1099-C from the organization canceling the debt. The IRS will cross-reference this to your tax return.
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