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melissathomas0112
Returning Member

multi-member LLC for rental real estate, but no activity for the year 2025

We started a multi-member LLC in 2025 to rent out our previous home. We ended up not doing any business through the actual LLC for the year of 2025. I am trying to file a 1065 to show zero income. On almost every tab under Federal Taxes, I get the message "So far, you haven't entered any rental real estate income. It's best to enter all rental income in the Rental Real Estate section to avoid any chance of duplication when entering other business income". Do I just ignore the message and continue forward since we did not have any rental business through the LLC in 2025? Or do I need to change the business code so it doesn't keep prompting me to add rental information? 

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2 Replies
DavidD66
Employee Tax Expert

multi-member LLC for rental real estate, but no activity for the year 2025

Did you have any expenses?  Generally, a domestic partnership (or LLC filing as a partnership) does not have to file a federal Form 1065 if it did not receive any income and did not incur any expenses (deductions or credits) for the tax year.  You can change the code, but I don't know if that will stop the prompts.  You probably indicated in the step-by-step that the business was rental.  If so, you'll need to change that.

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melissathomas0112
Returning Member

multi-member LLC for rental real estate, but no activity for the year 2025

Technically the only expense was when we paid to file for the LLC. That is where I am getting a little confused, from what I researched most people say if its a sole ownership LLC with no activity they don't have to file. But if it's a multi-member LLC you should file even zero income just for record keeping purposes. I guess I am worried if I change my business code will that be an issue for the future if we do eventually rent properties or does the business code not really matter?

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