Well I am impressed that you at least pulled the instructions to the 1065 and began to read them. Nice job.
I am summarizing your facts below to reach the conclusion that I don't believe you need to file a 1065 for 2016:
- Purchased property that is being updated and is not ready to be leased - property is not placed in service and will not be placed in service in 2016, and as such, will not be depreciated. All costs will be capitalized.
- May incur some organizational costs (Section 709) or start-up costs (Section 195) - these costs are capitalized and are either deducted (as allowed) or amortized (as allowed) when you begin your trade or business. You have not begun your trade or business. Ordinarily, a partnership begins business when it starts the business operations for which it was organized. Regulation 1.709-2(c). You have not met this standard.
- In both of these cases, you have not received any income nor incur any expenditures treated as a deduction for federal income tax purposes.
- Note that it is interesting that this "filing" requirement is different than that of an S corporation, but that is what the instructions tell you.
- This language is still currently in the 2016 draft version of the form 1065 instructions https://www.irs.gov/pub/irs-dft/i1065--dft.pdf?_ga=1.253676170.286459965.1455758446
If the above continues to hold true, I don't believe you have a 2016 form 1065 filing requirement.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
