Business & farm

@nstillwell You have a number of issues that need to be considered:

• You do have a mess here and I would probably recommend you meet with a tax professional to help you navigate these issues.
• You have filed incorrectly since the beginning of your rental journey.
  • You should not have filed any tax return until you actually had your rental property and began, or at least advertised your building, to rent; you don't have a trade or business until that time.
  • So 2019 is incorrect in that you should not have taken any expenses; a side note, using Schedule C was also not correct (rental in general is filed on Schedule E).
  •  Based on my previous comment, 2020 should not have been filed since you don't have any operations.
  • When you purchased the building, and if you wanted it in the LLC, it should have been titled in the name of the LLC.
  • 2021 is technically the first year you should have filed a form 1065; this assumes you began renting the building.
  • Once again, filing on Schedule C is not correct.
  • You need to go back to 2021 at a minimum and file a form 1065 along with amending your 1040.
  • As a result of the previous comment, your 2022 tax return is not correct.
  • All of the above impacts your VA return as well.
  • You can't file your 2023 return until you clean up the LLC and also file a 2023 LLC tax return.
• As you can see, there are a number of issues that need to be worked through and having a one on one with a tax professional is the way to go.  Don't be penny wise and pound foolish here.  You are already exposed to potential penalties and using a tax professional to help you minimize and maybe get some penalties waived, is money well spent.