My wife and I set up a multi-member LLC this year to purchase a vacation townhouse in another state. Mainly to avoid out of state probate and to eventually pass to our children. This property will be for our personal use (for now). The LLC bank account accumulated several hundred dollars of interest income mostly from the cash for the property purchase. My understanding is:
- I need to file a 1065 for this year because of the interest income but I cannot include deductions because the property is not income generating.
- I don't need to enter balance sheet data.
- If I stop the interest payments next year, then I don't need to file a 1065 the following year.
Thanks.
