Partnership LLC Form 1065

[hero2]

My son and his wife opened a business under a partnership LLC last year in November.  We are not a community property state.  Per IRS, they will need to file form 1065 which is similar to Sch C for self employed persons.  They ended with a big loss so is there a limit on the amount of loss they can deduct and can they carryover to subsequent tax years?  The TT Home & Business does not include the 1065 preparation or the K1.  Do I manually prepare this?  Form 1065 is confusing.

Thank you

[Mike9241]

i don't recommend doing a 1065 manually. to efile you would need desktop Turbotax Business -- only installs on full windows computer.   https://turbotax.intuit.com/small-business-taxes/ 

actually, I highly recommend the use of a pro the first year unless you are knowledgeable in partnership taxation. there are some tax traps such as start-up expenses, sufficient basis for them to take the lossss. there could be other issues as well.

the return is already late. it was due 3/15

the losses will transfer to their 1040 return and be deductible to the extent of their basis in the partnership.  excess losses can only be carried forward.

[hero2]

Thank you for your response.  Yes, I know tax filing is late for the partnership but the partnership is only between husband and wife and 1099s are not needed.  Will this business software only generate 1099, K1s, etc?  I will check out the Business software and discuss with them.

[JamesG1]

TurboTax Business prepares partnership tax returns including K-1's, 1099's and W-2's.

Revenue Procedure 84-35 addresses late filed partnership income.

If the partners filed their personal returns timely, and included all of their distributive share of the partnerships income (and other requirements) then you can use Rev Proc 84-35.

@hero2