Filing for LLC. Zero income. Each of 6 members contributes money to pay prop taxes, ins, maint, etc. Do I file member contributions as gross receipts or on the k1 info?

[platterell1]

We have the same situation.  There is a piece of property that my husband's parents left to the 7 kids.  We put it in an LLC to hold title to the property.  Now I'm not sure how to do the taxes.  We do not sell anything or make any money on the property - we have zero income.  When Turbo Tax asks about QBI, do I enter no?  Each member contributed money to pay for expenses.  As I'm reading in the previous post, the property tax is the only expense that can be counted??  What about insurance?

For assets, do I need to enter all the equipment that is there even if it would already be depreciated?  And the buildings would be assets.

What do I enter as Principal Business Activity and principle product or service  There aren't any.

[Anonymous_]

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@platterell1 wrote:

We do not sell anything or make any money on the property - we have zero income. 

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In what manner is the property being held? What are the circumstances? What equipment?

If the property is not being held for the production of income or in a trade or business (e.g., rental use), then you do not need to enter a business code nor should you be depreciating any property. Further, deductible expenses would be limited to property taxes and mortgage interest. 

The member contributions are just that; contributions to capital.

You might want to provide more details concerning the nature and use of the property.

[platterell1]

Thank you for your reply.

The property is just recreational property for the family.   Not for production of income or in a trade or business.  It was held in a trust when the parents were alive.  When they passed, it was put into an LLC to hold the title as there are seven adult kids that now own the piece of property.

The only expense would be the property taxes.  Does that then become a loss because there is not income?

Thank you again for your help!!

[Anonymous_]

Property tax is going to wind up on the kids' income tax returns (1040), if they itemize deductions and subject to SALT limitations.