Multi member llc

Forum|Forum|5 years ago
October 8, 2020
2 replies
58 views

My wife and I have a small llc which holds title to rental property. We are 50/50 owners, if we use the Business Program for tax submission, will we be required to also submit personal taxes on the personal/business form? And does that mean filing twice? We always file jointly and she receives a w2 and I am self employed.

thanks

Best answer by Anonymous_

@Broncobear wrote:

My wife and I have a small llc which holds title to rental property. We are 50/50 owners, if we use the Business Program for tax submission, will we be required to also submit personal taxes on the personal/business form? And does that mean filing twice?

If you are using TurboTax Business to file a Form 1065 for your LLC, then you also need a different TurboTax product (such as TurboTax Home & Business) to prepare and file your individual income tax return (Form 1040); TurboTax Business can only be used to prepare an income tax return for an entity, not an individual.

TurboTax Business, in the process of preparing a 1065 for your LLC, will also generate a K-1 for you and your wife which you will enter into your personal income tax return.

Anonymous_Answer

Level 15

@Broncobear wrote:

My wife and I have a small llc which holds title to rental property. We are 50/50 owners, if we use the Business Program for tax submission, will we be required to also submit personal taxes on the personal/business form? And does that mean filing twice?

TurboTax Business, in the process of preparing a 1065 for your LLC, will also generate a K-1 for you and your wife which you will enter into your personal income tax return.

BroncobearAuthor

Level 2

Thanks for all the replies. Very good information all around. The LLC is established in Arkansas which is not a CPS. So a 1065 will be filed by March 15th.

Opus 17

Level 15

If you live in a community property state, and the only two members of the LLC are spouses, then you have the option of filing two schedule Cs on your personal return, each listing half the income and expenses. Then you would include the W-2, and a second schedule C for your other self-employment, and everything else that normally goes on your personal tax return.

https://www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-companies

If you do not live in a community property state you must file form 1065 for the LLC, and you may choose to file form 1065 even if you live in a community property state. The partnership return form 1065 requires a different program, Turbotax Business, which is only available as a CD or download for PC, it is not online or for the Mac. As part of filing the 1065, each partner will be issued a K-1 form. The K-1s go on your personal tax returns along with your other schedule C small business, any W-2s, and other income, deductions and dependents.

Be aware, the deadline for filing form 1065 is March 15, not April 15, and the penalty for late filing is $195 per month per member. If you needed to file a 1065 for 2019, the deadline was not extended for COVID, although you can apply for an administrative waiver of the penalty if this is your first time owing a penalty.

Critter-3

Level 15

Wouldn't the LLC be a disregarded entity and be reported on a Sch E and not a Sch C ? I think you need to review the paperwork you filed to get the LLC's EIN ... what did you indicate with the IRS ?

Opus 17

Level 15

If not in a community property state, then it is clearly not a disregarded entity and files a 1065.

If in a community property state, the spouses have the option of treating it as a disregarded entity. I confess that I do not know in this case, whether that would mean 2 schedule C‘s or 2 schedule E’s.