Multiple LLC owned by spouses- tax year 2022

[bsl2020]

We have a multi-member LLC , which we will terminate in 2023. 

My wife and I will file jointly our final taxes for 2022 for our multi member LLC using TurboTax Business & TurboTax Home & Business .   

At the same time in 2022, my wife created a Single LLC.  Since this is a single member LLC we couldn't use the TurboTax Business but used the TurboTax Home & Business.  

1) Since we currently have two LLCs (multi-member and Single member LLC) for the fiscal year 2022,  do we use the TurboTax Home & Business 2022 twice, one for the multi-member LLC and one for the single member LLC? 

[Anonymous_ · Accepted solution]

You use TurboTax Business for the multi-member LLC and prepare a 1065 with associated K-1s.

You then prepare your individual income tax return (1040), once, for the single-member LLC and the rest of your income and expenses.

[bsl2020]

We are trying to file our individual income tax return (1040),  for the single-member LLC and the rest of our income and expenses.  For the income, the step-by-step asks for any 1099-NEC, 1099K, which we received from our multi-member LLC , NONE for the newly created single-LLC. 

We always file our 1040 jointly but in this case do we now need to file separately?  My wife and I are under the multi-member LLC which will be dissolved in 2023 but we still need to file a 1040 for 2022 which has 1099 NEC, 1099K. 

[ThomasM125]

You need to file the multi-member LLC income and deductions using the TurboTax Business product, as a partnership form 1065,  from which you will generate K-1 schedules for you and your spouse. You will file your personal tax return using the Home and Business, or also known as Self-Employed TurboTax product on which you will enter self-employment income for the single-member LLC, it will show up on a schedule C. The K-1 forms will show on the second page of schedule E.

The K-1 schedules get entered in the S-corps, Partnerships and Trusts section (in the Wages and Income area) and the Single-member income and deductions get entered in the Self-employed income and expenses area.

[bsl2020]

The TurboTax for Home & Business under my spouse's single member LLC is completed.  It asks if there's another business to add. We have a multi-member LLC which we attempted to add on. 

TT noted that we as spouses need to file separate 1040s since we have a multi-member LLC , splitting our income and expenses 50/50. Here are some issues regarding splitting income and expenses : 

1) We have two vehicles under the multi-member LLC. Is it best to assign and  allocate expenses for one vehicle per spouse's 1040?  

2) The multi-member LLC received 1099-NEC, 1099-K, 1099-DIV.  Do we need to both split these as well?   

3) Since we are the only members for the LLC, are we able to file my 1040 for the multi-member LLC and my wife file her 1040 for the single-member LLC?  

Best Regards 

[Anonymous_]

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@bsl2020 wrote:

The TurboTax for Home & Business under my spouse's single member LLC is completed.  It asks if there's another business to add. We have a multi-member LLC which we attempted to add on. 

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Do you and your wife hold your interests in the LLC as community property in a community property state?

If not, then you need to prepare a Form 1065 with associated K-1s for the LLC. You cannot use TurboTax Home & Business to prepare a 1065.

[PatriciaV]

Please clarify if you live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin). This fact will affect the answers to your questions.

@bsl2020 

[bsl2020]

Hi Patricia: 

We do not in a community property state.

Best Regards

[Anonymous_]

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@bsl2020 wrote:

We do not in a community property state.

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Then you need to prepare a 1065 for your multi-member LLC.