1120S or Schedule E Correcting MIstakes

Forum|Forum|5 months ago
April 7, 2026
1 reply
495 views

For some dumb reason my husband decided we needed to start an LLC for a single asset ownership rental home in tax year 2019. I am now trying to correct a situation and get rid of this paperwork because the house is owned by us jointly, and not by the LLC. In past years I mistakenly (I guess) reported the flow thru loss on the K1s which remain suspended as passive losses on the personal side. I want to now dissolve the LLC and just report everything personally since the corporation owns nothing. Do I need to go back and amend all personal and business returns as "mistakes" or can I just file a final return for 2025 and just begin reporting it on schedule E. This is all such a big fat mess. I used to be a CPA (as in 4 decades ago) but that part of my brain obviously left me years ago. Thanks for any advice offered.

Not A Product Question

ThomasM125

Level 15

You don't need to go back and amend prior year returns as long as the loss carryovers are not affected, as they would not likely be. If it was a single-member LLC wherein you reported the income and expenses on your personal tax return schedule E, you can just eliminate the LLC federal ID number on the Schedule E and continue reporting things as you were. If you filed a partnership return you need to mark the last return "final" and enter the rental assets on your Schedule E rental. To do that, indicate that the rental started on the start date listed on the Form 1065 and enter the assets using their dates put into service.

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