1120S or Schedule E Correcting MIstakes

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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.

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ThomasM125

Alumni - Intuit

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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