K-1 preparation for 100% owned LLCs

Forum|Forum|5 years ago
March 15, 2021
6 replies
24 views

How do I prepare a K-1 for a 100% owned LLC that owns 30% of an LLC that owns a rental property and 50% of an LLC that owns a different rental property? No other significant assets in the LLC.

M-MTax

Level 15

A "100% owned LLC"? Who owns the LLC? If it's 100% owned by one owner, it's a single-member LLC and is disregarded......no K-1.

calyondano111Author

Level 2

So if I own the LLC, no need to prepare a K-1 for the LLC, but instead pass through the entries for the K-1s on the owned property of the LLC to my individual return?

JeffreyR77

Level 10

If the LLC is a single member LLC, the income and expenses are reported on Schedule C on your individual income tax return.

There are no K1s associated with a Schedule C.

If your LLC is electing to be taxed as an S-Corporation, you do need to prepare a K1 to report your share of the S-Corporation's income and expense items that will pass through to your individual tax return to be reported and taxed there.