Kentucky Form 725 Interview

[jmdikeman]

Started a vacation rental business early in 2024.  Created/moved the property into an LLC May 2024.  Joined AirBnb/VRBO in Oct 2024.  I have no rental income for 2024, but am claiming expense deductions.  Completed Desktop TT Premier with no review errors.  Kentucky Form 725 states I owe the min LLET of $175.

Going through the interview again.  Screen "Tell us about this Return".....  Check applicable for solo LLC (single membership) offers 6 choices with no explanation of the choices (Initial, Final, Change Acc Period, Short Per Return, Qual passthrough, Amended).  I chose Final Return (also tried Initial Return).  Taxable Income Screen: all entries are $0.  Need better description of choices.  Why min tax due if no earnings?  

[PatriciaV]

Kentucky imposes a tax on every business that is protected from liability by the laws of the state. This includes corporations, LLCs, S-Corporations, limited partnerships, and other types of businesses.

Although the tax is based on income, there is a $175 minimum LLET.​

Also, if this is the first year you are filing a return for your LLC in Kentucky, check the box for "Initial return."