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MAD331
Returning Member

401k Partnership LLC received 1099 for rental income?

I have a multi member LLC whose members are all solo401k or Roth IRA entities   

We purchased rental properties and received a 1099-misc for rents which is not taxable income a retirement account. 
I completed a 1065 for the LLC  and have k1’s that show rents in box 1. How do I indicate this is a non taxable income to the members?
Code R in box 13? 
Complete form 990-t?  
TIA. Mike 

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1 Reply
MaryK4
Expert Alumni

401k Partnership LLC received 1099 for rental income?

You would complete the 990-T of there is unrelated business taxable income and provide the information to the members.  There is not really a place to indicate that it is not taxable on the K-1, but for example, in TurboTax for individual income taxes, there is a screen where you indicate it is a retirement account..  TurboTax then informs that it does not have to be reported on the tax return.  

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