topic How to report real estate for a LLC? in Get your taxes done using TurboTax

How to report real estate for a LLC?

pam24u — Fri, 12 Mar 2021 05:40:04 GMT

We are multi members LLC and we brought land to subdivide to sell later. How do we report this? I know we need to file a 1065. Is the purchase price my COGS? if so does that mean we have a huge losses until the property is sold? We all have full time job. This is just a side business. Not real estate professional. more like a dealer.

Re: How to report real estate for a LLC?

ee-ea — Fri, 12 Mar 2021 06:32:19 GMT

d tis info from the IRS https://www.irs.gov/businesses/small-businesses-self-employed/llc-filing-as-a-corporation-or-partnership

Re: How to report real estate for a LLC?

Mike9241 — Fri, 12 Mar 2021 07:56:26 GMT

the cost is inventory so you get no current deduction. as you sell you take a pro rata portion of the cost as a deduction (the ending inventory decreases)