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Level 1
posted Feb 19, 2020 2:00:33 PM

Do i need to file a 1065 and k-1

So my wife and i live in Colorado. We have two rental properties that we've owned since before 2009. This past year we started an personal LLC to run the income and expenses of the rentals through. The LLC has both our names on it so multi member I guess. 

 

The question is do I need to file a 1065 and k-1 or just do my schedule e as normal? 

 

I have ask 3 tax professionals and recieved 3 different answers so any help would be appreciated. 

 

Thanks

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3 Replies
Expert Alumni
Feb 19, 2020 2:17:33 PM

Colorado is not a community property state. Therefore, a husband-wife LLC is not a disregarded entity and has to file a tax return on form 1065.

 

Within the tax return of the LLC, there will be Schedules K-1 for each member of the LLC, whiuch are then reported on the members' personal tax returns.

Level 1
Feb 19, 2020 2:58:41 PM

Thanks,  does this mean we file the 1065 and k-1 in lieu of the schedule e or do we file all 3?

Expert Alumni
Feb 19, 2020 3:14:53 PM

Since you are licensed as an LLC in your state and you have more than one member, you will have to file the partnership return, you cannot file on a schedule C.