My husband and I own 100% of a newly formed LLC that owns some rental houses. Are we required to file a form 1065 or can we continue to report the income and expenses on our Schedule E?
2007-11-12 14:03:29 · 6 answers · asked by winnestow 2 in Business & Finance ➔ Taxes ➔ United States
If this is your first year then you may choose to treat your LLC as partnership (and file Form 1065) or as community property (in some states), then you don't file Form 1065.
If you and your spouse jointly own and operate an unincorporated business and share in the profits and losses, you are partners in a partnership, whether or not you have a formal partnership agreement. Do not use Schedule C or C-EZ. Instead, file Form 1065.
Exception. If you and your spouse wholly own an unincorporated business as community property under the community property laws of a state, foreign country, or U.S. possession, you can treat the business either as a sole proprietorship or a partnership. The only states with community property laws are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. A change in your reporting position will be treated as a conversion of the entity..
2007-11-12 17:35:21 · answer #1 · answered by MukatA 6 · 0⤊ 0⤋
No. I believe that owning Rental Property is one of the exceptions to having to file a 1065.
2007-11-12 14:30:20 · answer #2 · answered by Wayne Z 7 · 0⤊ 0⤋
You will need to file a 1065 if the property is owned by the
LLC.
2007-11-16 14:08:11 · answer #3 · answered by S T 2 · 0⤊ 0⤋
Yes, you will most likely need to fill out a 1065 since you are in a formal business partnership. Honestly, however, I am not a tax lawyer. I would suggest you talk with someone who knows more.
2007-11-12 14:08:04 · answer #4 · answered by swordofafang 2 · 0⤊ 0⤋
A 1065 is an informational tax return filed by ability of partnerships. Your Dad's LLC could be a multi-member LLC it particularly is being taxed as a partnership. A ok-a million has earnings tips from the partnership for each companion. ok-1s are filed with the 1065 and additionally issued to each companion. it particularly is, each companion gets a ok-a million that has earnings tips specific to him. A ok-a million information the companions' earnings for the tax year. while your Dad records his own tax return, he could enter the information from his ok-a million on his own tax return (form 1040). yet he does not could report the ok-a million together with his own tax return.
2016-12-08 20:12:23 · answer #5 · answered by ? 4 · 0⤊ 0⤋
1065 will be required and each of you will get a K-1P from the partnership.
2007-11-12 14:15:55 · answer #6 · answered by nealeinmi 3 · 0⤊ 0⤋