If someone has opened several restaurants as part of their business of developing restaurants, the income from said opened restaurants is reported on the Schedule K-1(s). But there are expenses incurred in the development phase both for the ones opened and the ones that never come to fruition.
Wouldn't those expenses be part of his Schedule C for being a developer, even though the income is on the successful K-1s?
Not sure I’m following.
Is the income from the K1s due because developer gets an equity stake in each restaurant?
is there income the developer receives on completion of each restaurant aside from the equity interest?
Is the ‘developer’ a GC with other building or construction projects?
not sure what you mean by a project that doesn’t come to fruition
@Skylanehas a good perspective.
Who owns the restaurants being developed, and who operates them? What is the relationship of this person to all of that?
"Level Up" is a gaming function, not a real life function.