Thank you very much.
On CA Form 568, I have three questions:
1) Item G: total assets at end of year: What should I enter in this box? Will that be the value of the rental property minus depreciation and plus improvement cost? Or should I enter "0" in this box?
2) Item Q: members in this LLC also LLCs or partnership? I have two LLCs and each holds one rental property. Will my answer to this question be "YES"?
3) Item U (1): is the LLC a business entity disregarded for tax purposes? And my answer to this question will be "YES". Then Item U (2): if "Yes," see instructions and complete Side 1, Side 2, Side 3, Schedule B, Side 5 and Side 7, if applicable. I read the instruction for CA Form 568 and it tells me SMLLC only needs to fill in Side 1, Side 2, Side 3, and side 7 (Schedule IW), but not Schedule B and Side 5. Am I right?
Thank you.
