PatriciaV
Expert Alumni

Get your taxes done using TurboTax

If the ownership of the LLCs is not identical to the ownership of the partnership, you should seek the advice of a local tax professional who can address your specific, complicated situation.

 

But if the owner(s) of the disregarded LLCs are also the partner(s) of the holding company, the IRS "looks-through" the disregarded entities and assigns the activity from the investments to the "holding" partnership. It's as if the single-member LLCs don't exist for tax purposes.

 

In TurboTax Business, indicate under Business Info >> About Your Business >> Type of business that you rent real estate to others. Then under Federal Taxes >> Rental Real Estate enter each LLC's activity as a separate rental property. These entries will consolidate the "subsidiary" activity under the "holding" partnership to be reported to the partners on Schedule K-1.

 

Be sure to file all necessary State Income tax returns as well.

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