Which product for LLC with rental properties

Forum|Forum|4 years ago
January 26, 2022
1 reply
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We are a married couple in Ohio with rental properties. In 2021 we formed an LLC and transferred the rental properties to the LLC. We are the sole owners of the LLC with equal ownership (50/50). Also in 2021, we hired a property management company to operate the rentals, and I presume they will be sending us a 1099. So for part of the year, we handled the income and expenses, and for the rest of the year, the property management company did. Can TurboTax handle this situation. If so, where do we start?

ColeenD3

Level 15

Yes, TurboTax can handle the situation. Since you formed a two-member LLC, you automatically default to being a partnership. If you wish to change to being taxed as a corporation, you may do so.

Regardless of which of the two statuses you choose, you will need the Business program, which can handle either.

harveycAuthor

Level 2

After forming the LLC, we had to get an EIN to open a checking account for the LLC. When the IRS sent the EIN, there was a note saying, "Based on the information received from you or your representative, you must file the following form(s) by the date(s) shown: Form 1065 03/15/2022"

Is that form part of the TurboTax business filing, and are business taxes normally due in March instead of April? Thanks.

Critter-3

Level 15

You need to use 2 programs ...

Business return:

If the LLC is a Partnership then it files a Form 1065 income tax return.

Corporation or Partnership tax returns can only be created, completed and filed using the TurboTax Business Edition. The Business Edition can only be installed on a Windows base personal computer, not on a Mac or online. The Business Edition cannot complete a personal tax return - https://turbotax.intuit.com/small-business-taxes/

Personal return:

The Corporation or Partnership issues you a Schedule K-1 for your share of the income, deductions, etc. The Schedule K-1 is entered on your personal tax return.

Using the TurboTax online editions you would need either the Premier or Self-Employed editions for entry of the Schedule K-1 - https://turbotax.intuit.com/personal-taxes/online/

Using the TurboTax desktop CD/Download editions, any edition can be used for the Schedule K-1 - https://turbotax.intuit.com/personal-taxes/cd-download/