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YoloTax7
New Member

Do we need to file tax return if business has not opened yet but received 1099-INT from business checking account?

My wife and I created an LLC in 2018 but have not opened for business yet. We did not plan on filing a tax return for LLC for 2018 (1065 partnership return). 

But we just received a 1099-INT from our bank because when we opened a business checking account in 2018 we received a $200 bonus for signing up.

How should we account for the $200? File a 1065 with all zeros and include the $200 divided on K-1 forms?

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Do we need to file tax return if business has not opened yet but received 1099-INT from business checking account?

If the Partnership had income ($200 of interest), it is required to file a tax return (Form 1065).

That income will then flow to your personal tax returns via the K-1s.

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8 Replies
Carl
Level 15

Do we need to file tax return if business has not opened yet but received 1099-INT from business checking account?

If you can, I would just report it on my personal tax return, provided the 1099-INT has a social security number on it, and not your business EIN.
YoloTax7
New Member

Do we need to file tax return if business has not opened yet but received 1099-INT from business checking account?

Thank you for the reply. The 1099 has the EIN on it as it was created for the business.
Carl
Level 15

Do we need to file tax return if business has not opened yet but received 1099-INT from business checking account?

@TaxGuyBill @TaxPro+40 since the EIN is tied to one of their SSNs, can they still report it on their personal tax return?

Do we need to file tax return if business has not opened yet but received 1099-INT from business checking account?

If the Partnership had income ($200 of interest), it is required to file a tax return (Form 1065).

That income will then flow to your personal tax returns via the K-1s.

YoloTax7
New Member

Do we need to file tax return if business has not opened yet but received 1099-INT from business checking account?

Thank you. Makes sense, just a bunch of work for the small $$ amount. Are we also correct that even though we have that small income amount, we shouldn't report any business expense on the 1065 this year since the business is not yet open for business? Appreciate the help.
Carl
Level 15

Do we need to file tax return if business has not opened yet but received 1099-INT from business checking account?

Basically, on the tax front the business "is" open for business when you will the 1065 return. So @TaxGuyBill will they claim their startup expenses incurred in 2018? If so, then what happens with the startup expenses incurred in 2019? How is that treated on the 2019 return?

Do we need to file tax return if business has not opened yet but received 1099-INT from business checking account?

As far I understand, nothing besides the interest would go on the 2018 tax return.  It would all be part of the Startup Expenses in 2019.  However, I suspect that the TurboTax program may give you a problem with that in 2019.
YoloTax7
New Member

Do we need to file tax return if business has not opened yet but received 1099-INT from business checking account?

Roger that. Thanks again very much for your help.
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