topic K-1 for Rental Owners in Investors & landlords

K-1 for Rental Owners

JBalchun — Fri, 10 Jan 2025 21:22:17 GMT

I own several rental properties and manage a couple for other people.

This year I started a single member LLC to act as the property manager.

All the rent flows into the LLC. Mortgages, HOA, repairs, utilities are all paid by the LLC.

At the end of the year, the LLC writes a check to the owners for the net that their property made.

How do I report the information to the owners? How does TurboTax want me to handle it? At the end of the year, the LLC only makes a small management fee but the amount of money and transactions that flows in and out warrants, I feel, more than one line in turbo tax.

Re: K-1 for Rental Owners

Mike9241 — Mon, 13 Jan 2025 20:37:56 GMT

a single-member LLC is disregarded for income tax purposes.

you would report your rental properties the same way you did before the LLC was created. The management fees and related expenses would go on schedule C (you do not report the operations of the other properties). Since it seems you do not have an ownership interest in these other properties you would need to supply their owners with a cash flow statement so they could prepare their income taxes. There are no partnerships so no 1065s would be filed.

cash flow statement - an example of what it might contain:

cash beginning of the year

rent received

other cash received - describe

expenses by category

capital expenditures

distributions to owners

cash end of year.

one would be needed for each property.

you also need to file 1099-MISC to report the rents collected for others to the IRS

Re: K-1 for Rental Owners

JBalchun — Wed, 22 Jan 2025 15:39:06 GMT

Very helpful. Thank you