LLC return

[mmoran60]

If there were partner distributions for an LLC for disposal of a home, and this is the final return,

where do I record the distribution?  My balance sheet is out of balance. 

[tagteam · Accepted solution]

You would enter the distribution to each member (partner) of the LLC in the Partner/Member Information section of the program (located under the Business Info tab).

[Critter]

Are you completing the Partnership return form 1065?   

Please use the following link to contact Customer Support for further assistance.

https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632

[Anonymous]

as a practical matter,  on a final return, there are no assets, liabilities, or even equity. ie the balance sheet is all 0's  - all assets have been sold, consumed, or distributed (including cash).  all its liabilities were paid off or discharged resulting in income.  The final distribution of cash would eliminate any remaining members capital.   

in the real world, the books are sometimes held open past year-end so any bills coming in late can be paid off and recorded on the final return.  but in the end, the balance sheet is still all 0's.  while the capital a/c in total is all zero's. the individual Members a/c's might not be 0 for each.  this can occur for many reasons.  then IRC 704(b) may come into play.  

[mmoran60]

Thank you very much, it worked.

[mmoran60]

On the K-1, why would there be self-employment earnings(loss) on line 14, which is equal to the business loss on line 1, for the managing partners of the LLC, but not for the non-managing partners?  thanks.

[Critter]

Managing partners work the business ... and non managing partners are passive investors so SE tax is not required. 

[mmoran60]

I am still confused on where to put the proceeds of the home sale, which was the sole asset in the LLC.  I was told to put it under Investment Income - Capital Gains or Losses.  But that section seems to be for stocks/bonds

sales rather than the sale of a home.  Does it go under Business property/assets disposals.  I presume I need to show the gain on the sale of the house via the LLC, and distribute it to members via the K-1?  Thanks.

[tagteam · Accepted solution]

@mmoran60 The Investment Income section for Capital Gains/Losses is set up for stocks and bonds, but that is where you would enter your transaction; the gain will be passed through to the members via the K-1s.

You would not enter the transaction as the Sale of Business Property unless the property was a business asset or rental property (and it appears as if the home was neither). 

[mmoran60]

Thank you