Hi, I have a LLC and my wife and I are the owners, IRS send a letter mention that we have ECGI (Effectively connected gross income) we need to fill some additional forms.
They mention if we are non-publicy trader partnerships (and ask to fill forms 8804,8805,8813) or if we are publicy traded partneship (we need to fill the forms 1042,1042-t,1042-s)
Basically our LLC has a house rented and some minor investments in stocks. Because of the HOA, Landfee and some extra costs that I have in the house we are getting loss in the company.
What should I do?
In the end of the letter they mention to visit www.irs.gov/cp282 or publication 515
I used the package from turbotax to deliver the forms and etc.
Did you file a Partnership return or just a Schedule E with your personal return?
Are you attempting to have a qualified joint venture? A qualified joint venture is a joint venture that conducts a trade or business where (1) the only members of the joint venture are a married couple who file a joint return, (2) both spouses materially participate in the trade or business, and (3) both spouses elect not to be treated as a partnership.
Unless you live in a community property state, this option is not allowed if the husband and wife have an LLC.
Hi, thank you for the answer.
Well, I filled a parnership return in IRS and Texas.
By using the Turbo Tax softwware I filled every form that I was asked to fill.
As a part of the filling the Turbotax software print my wife and I returns show that we lost money (because primary because the rent is not above of the total cost to maintain the house).
Both of we are foreigners and I forgot to mention that the IRS letter mention that.
"On your completed form 1065 you indicated that your partnership has a foreign partner. Because of this relationship your partnership may have an additional filling requirement"