topic Turbotax creating a California LLC for rental income in State tax filing

Turbotax creating a California LLC for rental income

sdouty — Mon, 22 Mar 2021 17:33:24 GMT

We rented out a cottage on our property in 2020, and TurboTax properly logged the income and expenses. We did not create an LLC for this - it was just another part of our income.

However, when generating the California state return, TurboTax created an LLC (out of nowhere) with the same income and expenses. Now TurboTax is asking me for the LLC's name, CA tax ID, etc. but I never created one in the first place, so I'm stuck.

Why is TurboTax creating an LLC where there was none on the federal return? How do I get past this?

Thanks...

Re: Turbotax creating a California LLC for rental income

DaveF1006 — Mon, 22 Mar 2021 18:32:46 GMT

it depends. Did you record this as Self-Employment in Schedule C or rental Income in Schedule E? You might review your entries in you California return to see if you accidently indicated it was an LLC then. Also, you might wish to go to state>delete your California State return and then add it back in to see if there is still a mention of a LLC.

Re: Turbotax creating a California LLC for rental income

sdouty — Mon, 22 Mar 2021 18:37:06 GMT

Thanks - you are addressing the exact issue.

In reviewing my Fed return, the rental income is shown on Schedule E.

I'll try to delete the CA return and start over.

Steve

Re: Turbotax creating a California LLC for rental income

sdouty — Mon, 22 Mar 2021 19:02:49 GMT

Update - I deleted the CA data and re-entered the state data. One clue - after entering the info for the first part of the state return, it shows the rental property with the following instructions: "If your rental property is a single-member LLC, then click EDIT below." I did NOT click edit and the new LLC was not created.

Thanks again.