Multi-member LLC How to file on Turbotax Home and Business

[nickmarksthespot]

Please help!  I've spent all morning trying to figure this out.  My wife and I purchased a rental property in 2021 and formed an LLC where we are 50/50 members.  We self-manage the property.  In Turbotax, under the business tab, if I select Yes under 'Did you have any income and expenses for a business in 2021?' it makes me enter my rental income on Form 1099K.  I don't think this is correct.  However, under the Rental and Royalty section, I select my wife and I are both owners, but it never asks for the LLC/EIN/partnership information.  

Which direction do I go?  Or do I skip the business section and enter everything under personal?

Thank you so much in advance!

Nick

[Anonymous_]

Real estate rental income and expenses are entered in the Rental Properties and Royalties section of TurboTax Home & Business.

However, unless you and your wife hold your interests in the rental property as community property in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin), you will have to file a Form 1065 for your multi-member LLC.

See https://www.irs.gov/instructions/i1065#en_US_2021_publink11392vd0e555

You might want to seek professional tax guidance for your scenario.

[ColeenD3]

There are a couple of considerations. The first is whether your LLC is a Partnership or a Qualified Joint Venture.  If you live in a community property state, you qualify as having a QJV. If not, you will need to file a partnership return and will need the business program.

The second is that unless you are real estate professionals, you are not self-employed for Schedule C purposes. You would enter your income and expenses on Schedule E.

Please see this LINK for a detailed discussion.

[nickmarksthespot]

Thank you.  We are in Virginia, so not a community state.

[Anonymous_]

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@nickmarksthespot wrote:

Thank you.  We are in Virginia, so not a community state.

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Then you will have to file a Form 1065 for the LLC. 

You should definitely seek professional guidance, particularly since this is your first year filing a return for an entity.

[Mike9241]

a partnership return requires Turbotax Business. it is only available for purchase as CD or download - no online version. it can only be installed on a Windows computer

https://turbotax.intuit.com/small-business-taxes/ 

if a partnership return is needed it's due 3/15/2022

failure to file can result in a penalty of about $400/month for each month late max is about $4,800