The LLC pays its corporation taxes (21%) on my rental income. The remaining profits are distributed to the owner, as if the LLC is dissolved at the end of each year. These are not dividends.
Form8832 ...
• If an eligible entity classified as a partnership elects to be classified as an association, it is deemed that the partnership contributes all of its assets and liabilities to the association in exchange for stock in the association, and immediately thereafter, the partnership liquidates by distributing the stock of the association to its partners.
• If an eligible entity classified as an association elects to be classified as a partnership, it is deemed that the association distributes all of its assets and liabilities to its shareholders in liquidation of the association, and immediately thereafter, the shareholders contribute all of the distributed assets and liabilities to a newly formed partnership.
• If an eligible entity classified as an association elects to be disregarded as an entity separate from its owner, it is deemed that the association distributes all of its assets and liabilities to its single owner in liquidation of the association.
The State (Kentucky) still considers it an LLC and taxes at their rate.
My question is which version of TurboTax allows for this? I am using TurboTax Deluxe and it does not allow for this. It can not separate out the Federal Return taxes away from my Federal 1040.
