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Level 2
posted May 31, 2019 7:09:18 PM

I had an LLC for 10 years and closed it in 2015 but still own the properties. How does that change for filing taxes?

Does all the information I put in the business have to be reput in now that it's not an LLC. Do I act like I just gained the properties in 2016. How does that work? Because the schedule K is final how do I go about entering the properties in turbo tax now?

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1 Best answer
Level 13
May 31, 2019 7:09:20 PM

Based on your facts, I will make the following comments:

  • It appears that you had a single member LLC.  If this is the case, from a federal income tax perspective there is no change in how you file your tax returns.  Everything will continue to be reported on Schedule E.  This is because for federal income tax purposes, a single member LLC is a disregarded entity (assuming you did not make any check the box election to be taxed differently); you and the entity are one and the same.
  • This will also hold true for most state income tax purposes; although you do not mention what state you are in.
  • You indicate that you "closed" the LLC in 2015.  Does that mean you filed the necessary paperwork with your Secretary of State to dissolve it?
  • Based on the response to the third bullet, you need to look at how the properties are titled.  Did you also re-title the properties back into your name individually?
In summary, you really have no change from an income tax perspective, but you may have some other state filing matters to resolve.

3 Replies
Level 13
May 31, 2019 7:09:20 PM

Based on your facts, I will make the following comments:

  • It appears that you had a single member LLC.  If this is the case, from a federal income tax perspective there is no change in how you file your tax returns.  Everything will continue to be reported on Schedule E.  This is because for federal income tax purposes, a single member LLC is a disregarded entity (assuming you did not make any check the box election to be taxed differently); you and the entity are one and the same.
  • This will also hold true for most state income tax purposes; although you do not mention what state you are in.
  • You indicate that you "closed" the LLC in 2015.  Does that mean you filed the necessary paperwork with your Secretary of State to dissolve it?
  • Based on the response to the third bullet, you need to look at how the properties are titled.  Did you also re-title the properties back into your name individually?
In summary, you really have no change from an income tax perspective, but you may have some other state filing matters to resolve.

Level 2
May 31, 2019 7:09:21 PM

problem is I didn't realize that we were considered single member so for 10 years I did it as multi with a schedule K (had separate filing of a 1065 partnership). Yes I closed the business with the Secretary of state and the properties are now in our trust.  So because I did it as a 1065 with a schedule K I don't know how to change it now for 2016.

Level 13
May 31, 2019 7:09:23 PM

I would recommend you just file a Form 1065 with zero's and mark it as final.  That way it closes it out with the IRS.