pooled money into an LLC to invest, then separated. What to do with K1?

[aliegner]

Looking for some input here, I feel like I'm a bit lost.

Situation:
- a few years ago, myself and two friends pooled our $$ together to invest in a RE syndication. ie. a big investment firm was soliciting $100k minimum investments for a large 500door apartment complex. We created an LLC and pooled together our $$ to do the $100k minimum.
- Each year, we get a single K1 in our LLC's name.
- Each year, I've personally created our three K1's from our LLC to our individual names, just dividing everything appropriately.
- Last year, we were able to convince the managing investor to allow us to split up our LLC investments to our personal names, so we signed all the legal paperwork to shuffle the funds out of our LLC-named designation onto our personal names. I then wound up our LLC.
- Now this year, we are getting two K1's. One for the original LLC and one for our personal name.


So I guess my question is: do I need to create 3 K1's again from our LLC to our individual names, and then we each enter two K1's into our taxes? How to document this situation? Hopefully this is the last year I'll have to bother creating K1's.

[Vanessa A]

do I need to create 3 K1's again from our LLC to our individual names, and then we each enter two K1's into our taxes? Yes, you will need to handle it the same way you did in past years for the one that was sent to the LLC and you will each enter 2 K-1's on your return.

How to document this situation? As you walk through the steps for the LLC  you will select that it has been dissolved.  You will also select that it ended when entering it on your personal return. That is all you will need to do. 

[aliegner]

Cool, yes I'm concerned about maybe getting double taxed. Is there a section to enter the date range of each K1?

[Vanessa A]

No, there is no need for the date range, however, it will ask you what date the partnership ended operations.

As long as the investment firm is not duplicating your income, you would not be double taxed.