My wife and I are sole members of an LLC domiciled in California which is a community property state. The LLC owns and rents real estate. I initially filed Form 1065 and CA Form 568 for 2023 with two K-1's, one each for my wife and me using Turbotax Business for Desktop. I have since learned that as a married couple in a community property state, our LLC qualifies for IRS treatment as a disregarded entity per IRS Revenue Procedure 2002-69. So for federal taxes we can dispense with the Form 1065 and K-1's and will report LLC activity directly on Form E of our joint tax return. I believe that I can correct this with the IRS by amending the initial Form 1065 and K-1s to a final 1065 and K-1's. However, my question is how to achieve this same result on CA Form 568. How do I amend Form 568 initially filed as a MMLLC with two K-1's to a SMLLC, such that going-forward I will file Form 568 for our LLC annually as an SMLLC? Any help is greatly appreciated.
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There is no need to file an amended return to correct this. Just file the schedule E going forward and that will handle any income or expenses correctly.
There is no need to file an amended return to correct this. Just file the schedule E going forward and that will handle any income or expenses correctly.
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