LLC Filing?

[Sharonk13]

My boyfriend and I started an LLC (each deposited $500) to rent  out our houses, but never transferred the titles of the properties to the LLC. He ended up using a property management company to rent his house, but rent payments for my property were sent to and withdrawn from a bank account setup for the LLC. The income was maybe $600 and the loss will likely be greater. How do we file for this? I feel like $150 to file for a business is a lot when we've already lost money!  

[DianeW777]

The LLC return must be filed even if you decide to end it.  You could mark it first and final if that's what you decide.  It sounds like your best option since only your property was included in the LLC.

The correct form to file for a partnership is Form 1065, and each partner would receive a 1065-K1 to include and report on your personal returns. 

The fee for filing may seem high, however the IRS will charge penalties for not filing the return.  These penalties can be much higher.

[Sharonk13]

Thank you! Does it matter that the title of the property was never transferred to the LLC?

[RobertB4444]

Yes.  An LLC is a disregarded entity.  You can file all the income and expenses on a schedule E as you always have.  As long as all of the income and expenses are included there and there was no other income for the LLC the schedule E is all you need to file.  If there was any other income unrelated to the rental house then you will have to file the 1065 as @DianeW777 pointed out. 

@Sharonk13