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hamiltm1
New Member

How can I enter an S corporation as the sole source of income for a real estate rental LLC? My options are only the LLC entities on the return.

My return has K1's for two LLCs and one S corp. The LLCs are rental businesses that receive all of their income from the S corp. In entering information for the LLCs I am asked if the LLCs receive at least 50% of income from an SSBT, which they do. But I am not able to choose the correct entity - the S corp - because it is not on the list. Only the very same LLC is on the list of businesses. (See screen shot, the business name is redacted but in all cases it is the same LLC as I am entering information for.)

I also looked at the forms and found the field in enter the SSBT. But I was not able to select the S corp and link to that form. 

To clarify based on the first response, this is a software question not a tax or accounting question. The software is forcing me to choose the entity that provides most of the income to the LLCs but then gives me only incorrect choices!

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1 Reply
Anita01
New Member

How can I enter an S corporation as the sole source of income for a real estate rental LLC? My options are only the LLC entities on the return.

Your question is unclear.  You can't have an S Corp on an individual return.  You can only have a k-1 from the S Corp.  Once you have the k-1 in your return, you already have the rental income on the return.  You would not file the same rental income again.  A single person LLC is a disregarded entity for a personal return, and it would be reported on a Schedule C, but, as I said, you don't report the same income twice.  Why are you creating layers of complication to try and report the same income multiple times, instead of just doing a Schedule E for rental income without all all the mess of LLCs and k-1?  You'd still qualify for the new credit.

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