Yes, it is still true that you will not report anything until you sell it. Then when you sell it, you will deduct the total costs from the selling price to arrive at your net profit on form 1065. The LLC will then generate K-1's to each of the 3 of you reporting your individual percentages which you will then enter on your personal tax returns.
I assume you mean you have a single-member LLC which would be reported as self-employment income on a Schedule C as part of your Form 1040 personal tax return. If you purchased the property to "Flip" it, such that it is not used for personal purposes, you would accumulate all of the costs associated with it and deduct them in the year that you sell the house. So, in 2024 wouldn't report anything for it on your tax return.
Thank you for your help.
It is not s single member LLC. We re three partners, 33.33% each.
And yes, we purchased the property to flip it.
Is it still true that we don't need to report anything in 2024?
Thanks!
Yes, it is still true that you will not report anything until you sell it. Then when you sell it, you will deduct the total costs from the selling price to arrive at your net profit on form 1065. The LLC will then generate K-1's to each of the 3 of you reporting your individual percentages which you will then enter on your personal tax returns.