My wife and I created a revocable trust to avoid probate. We have an LLC and made the trust to be the sole member of LLC. We completed form 1065 and the IRS sent a letter saying that the returns do not meet the filing requirement for partnership returns and that they are removing our partnership filing requirement; they advised in the future to report profit and loss on individual IT return using Schedule C and income/expense from rental activities on form 1040 Schedule E. I do not actively participate in rental activity; a rental company manages everything for a fee. Do we have to file Turbotax Home and also TT Business? Can we avoid form C and E if we change to 2 member LLC with the trust and one of us being the members? Thank you.
