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frankharry
Level 2

Family farm LLC, form 1065

My family owns farmland in Iowa.  Last year we formed an LLC with the four family members.  This is our first time filing taxes as an LLC.  We have a tenant that rents the land and we do not actively participate.  The expenses are property taxes, liability insurance, and utilities.  Everything is simple.  The LLC collects rent and pays the expenses, and all profits are paid out to the members proportionately to their shares once per year.  All these items appear to go on form 8825 and get transferred to form 1065 Schedule K, line 2.  Each member has a Schedule K-1 that shows his/her share of the profits and liabilities. 

 

It looks like the first page of form 1065 is pretty much empty.  Everything is zero.  We don't have to file a balance sheet since the total assets are less than $1M.  I understand the profits will transfer to each individual's tax returns.  Am I missing something?  Is there anything else we need to report on 1065 and associated forms?  Thanks in advance for any info.

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tagteam
Level 15

Family farm LLC, form 1065


@frankharry wrote:

Am I missing something? 


You are probably not missing anything since your only income and expenses involve a passive activity, the net profit of which is passed through directly to the members.

 

In fact, if you enter Forms Mode and look at the first page of your Form 1065, you should see a line that reads, "...include only trade or business income and expenses on lines 1a through 22...".

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1 Reply
tagteam
Level 15

Family farm LLC, form 1065


@frankharry wrote:

Am I missing something? 


You are probably not missing anything since your only income and expenses involve a passive activity, the net profit of which is passed through directly to the members.

 

In fact, if you enter Forms Mode and look at the first page of your Form 1065, you should see a line that reads, "...include only trade or business income and expenses on lines 1a through 22...".

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