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Level 2
posted Sep 21, 2021 9:08:04 PM

How to answer "Did either of you make money in any other states?"

I live in MA. I don't personally own rental properties in RI but my LLC owns rental property in RI. Should I answer the question with Yes or No?

 

 

0 7 1529
7 Replies
Level 15
Sep 21, 2021 9:27:31 PM

the question doesn't ask if you personally own property in other states it asks if you made money in any other states. the short answer is yes because that income passes through to you.

 

 

Level 2
Sep 22, 2021 8:42:07 PM

The rental income was in LLC and 1065 was filed. I received K1 from LLC. Still have doubt whether to answer 'Yes' here.

Level 15
Sep 23, 2021 5:57:29 AM

Doesn't matter. Bottom line is, you did "in fact" make money in another state. Period.

Level 15
Sep 23, 2021 7:48:12 AM


@charliehu wrote:

The rental income was in LLC and 1065 was filed. I received K1 from LLC. Still have doubt whether to answer 'Yes' here.


@charliehu 

 

Since the LLC had RI source income, did the LLC file an RI-1065 (and associated K-1s)?

 

See http://www.tax.ri.gov/taxforms/corporate.php

Level 15
Sep 23, 2021 10:01:57 AM

if you follow through on your logic that you don't own the property then why are you reporting it for Federal purposes? 

Level 3
Dec 7, 2021 11:44:09 AM

What if the LLC loses money?

Level 15
Dec 7, 2021 1:13:37 PM


@BrotherRick wrote:

What if the LLC loses money?


If the LLC has a net loss on residential rental real estate, the loss could be limited by the passive activity loss (PAL) rules.