My husband and I are the only two members of an LLC that we manage our residential rental real estate under. My CPA has always filed my taxes and he has identified it as a DOMESTIC GENERAL PARTNERSHIP up until now. I have downloaded and installed Turbotax Business this year and selected Domestic LLC based on the descriptions and my understanding of the Corporation.
Which one is a husband and wife, two equal member LLC ? Please advise.
Please clarify if your accountant filed a Form 1065 for your Partnership.
Yes, He has filed 1065. Also, I have now finished the Business filing [short of actually filing], and all the forms I have from the TurboTax filing match what he has had in the prior year filings.
The big differences are:
1) Total Assets in #F in his filing has a value and mine with Turbo Tax filing foes not.
2) Schedule L has a beginning and ending tax balances in his filings and mine with TirboTax do not.
I am guessing both #1 and #2 are because I have opted not to create a Balance Sheet. Turbotax tells me I have an option not to if the following conditions meet and my LLC meets all the conditions. I hope I am OK there??
The IRS does not require you to complete the schedules listed below if this partnership has:
- less than $250,000 in total receipts
- less than $1,000,000 end-of-year assets, and
- provides Schedules K-1 to its partners.
3) In Schedule K-1, in #20, his filing from last year says "Z* See attached statement" and mine from Turbotax says "N* See attached statement" I do not quite know the difference between Z and N.
IF you could help clarify the additional questions as well, I'd be grateful. Thank you!!
I found this on the IRS site ... stating Multimember LLCs [>=2] is considered a Partnership for IRS TaxFiling purposes. So I am going to change my business classification from Domestic Limited Liability to Domestic General Partnership. Please let me know if you disagree.
Also, I would still appreciate your responses to my other Questions in the prior post.
Thank you!