Amending my 2020 LLC from a sole member partnership 1065 to schedule C on 1040.

[CaBrandy]

I have filed my 2020 taxes with one of my LLC's for rental properties under form 1065.  As a sole member I'm now need to file as a schedule C on my 1040 as I have done for my 2021 return.  I'm using Turbo tax premier so do I need to upgrade to Home & Business to get schedule C.   

[LudwigVan_fan]

Yes, to get Sch C you need home and business.  But generally, rental properties go on Sch E.

You should not have filed a F1065 for a sole member LLC.  That is not an option for a sole member LLC.

[CaBrandy]

Ok, I have amended my 2020 1040 to put my LLC for rental properties on schedule E.  One question is that I had a loss on two properties that Turbotax is including in my net income for 2020.  Is that correct because when I did that LLC business rental as a 1065 Partnership it didn't take that net loss and add it into my personal income.  I believe that I answered the business organizational questions correctly when I put the rentals on schedule E.  I just don't want to make another mistake with this filing. 

[LudwigVan_fan]

When you entered information from the partnership, if there were losses, TT perhaps didn't deduct the losses as they were passive.

Rental properties is considered to be a passive activity and losses may be limited.  TT should have asked some questions in regards to your participation in the activity, etc.  Also to be considered are the at risk rules.  This is a complicated area.  Here is a link to Pub 925 which should help to explain passive activity, material participation, real estate professional, and the at risk rules.

https://www.irs.gov/pub/irs-pdf/p925.pdf