Form 4797 ?

Forum|Forum|4 years ago
January 1, 2022
1 reply
5 views

I have a multimember LLC that finances the construction of residential homes. We sold our first home in 2021 and will receive a 1099 S from the title company for our share of the proceeds. As I'm roughing out taxes it seems to me that I need to report the gain on form 4797 Part II but I can't seem to get TT to let me do this. So I guess my question is where/how do I report the info from the 1099 S?

Mike9241

Level 15

am i correct that by financing you mean the LLC provides the funds to buy the land and finance construction? if so then your trade or business is the construction of homes. what you are selling is inventory. that gets reported on page 1 of 1065 and is ordinary income. the cost of construction would go under cost of goods sold.

Mike9241

Anonymous_

Level 15

I agree with @Mike9241, if that is, indeed, the activity in which you are engaged.

Regardless, whatever you are doing with your multi-member LLC, you are going to need TurboTax Business to prepare a 1065 for the entity; you cannot use a personal version of TurboTax for your purposes.