Have living trust own SMLLC that holds rentals Used Home and Business desktop download version to do 2021 tax How can change from Individual to Trust in CA 568 form?

[attran1]

On the Form 568, I see Side 1, 2, 3, and then 7.  Side 4, 5, 6 are missing.

During the CA State interview, I did not make any adjustments.

I went back to CA return in the Turbo Tax.  At the "Here's the income that California handles differently", I see Home->Home Sale.  I click on Revisit.  It shows my rental as my "Personal Residence".  This can explain my problem.  I click on it and I do not see any other choices.  How do I tell that this property is a rental, and not my home residence?

[attran1]

In the section "Here's the income that California handles differently"=>Business=>Rental or Royalty Adjustment, I click "revisit", I make sure that all properties is "owned by a single member LLC".  At the "Form 568 Summary", I click on "Edit" next to my LLC name, then "Continue to Slide 4", I see Schedule A, B, K.  I see line 2 filled out on column (b).  I don't see anything on line 10a or b.

[attran1]

Hi Patricia,

I have not heard back on this thread.  It looks like it is a Turbo Tax bug.  This is critical because there are penalties for omitting this information in the form.

Anthony

[PatriciaV]

Did the rental sale include a personal component? In other words, was that property converted to or from your personal residence during the time you owned it?

The box for ultimate owner cannot be changed manually. TurboTax asks only if taxpayer, spouse, or both own the business. There is no option for a trust to own a Schedule C business.

Because the filing deadline has passed, you should have filed an extension with an estimate of your taxes based on the information you have already entered. That will give you until October 15th, 2022 to file the full return. If you will owe taxes, you will want to pay an estimate of that now, so you will only on interest on any extra amount. If you pay too much, it will be refunded to you. Please click the link below for a TurboTax Help article with information about TurboTax Easy Extension found at the bottom of the left menu bar. TurboTax Easy Extension

[attran1]

Hi Patricia,

Luckily I have a CPA. I have filed my tax already.  I don't need to file an extension. 

By checking her work against Turbo Tax for a possibility of doing the tax myself next year, I am running into this issue.

No, the property has always been 100% belonging to the LLC.  We do not have a personal interest on it.  The LLC is owned by the trust where we are the trustees.

Per the CPA the trust doesn't need to be shown on the tax return.  I need a way to tell Turbo Tax that the property was owned by the LLC and was sold under LLC.

Anthony

[attran1]

Hi Patricia,

I have not heard back on this thread.  Is Turbo Tax going to fix this bug?  I would like to know if I can rely on it for my next year tax return.

Thanks,

Anthony