Joint Filing with 50/50 LLC

[cdionne11]

I am a little confused as to how i am suppose to file our llc taxes. We are married filing jointly. Our business took a lost this past year so we do not have a profit to report.

[rjs]

If I understand correctly, you and your spouse are the only members of the LLC, and you each own 50%. Is that correct?

What state do you live in? An LLC owned by a married couple is handled differently depending on whether or not you live in a community property state.

[cdionne11]

RJS, that is correct. Our state is georgia.

[rjs · Accepted solution]

Since Georgia is not a community property state, your LLC owned by spouses is treated as a partnership for income tax purposes. The LLC has to file its own partnership tax return (Form 1065), separate from your personal Form 1040 tax return. Part of the partnership return is a Schedule K-1 for each partner, showing the partner's share of the partnership's income and expenses. You have to enter the information from your Schedule K-1s in your joint personal Form 1040 tax return.

All of this is the same whether you have a profit or a loss.

TurboTax Self-Employed or TurboTax Home & Business cannot prepare a Form 1065 partnership return. For that you would need TurboTax Business, which is a different product from TurboTax Home & Business. TurboTax Business is not available as an online service. It's only available as software that you install on your own computer from a CD or a download, and it's only available for Windows, not Mac.

TurboTax Business cannot prepare a personal Form 1040 tax return. You need one of the personal editions of TurboTax for that. If you use TurboTax Online for your personal return, you have to use Premier or Self-Employed to be able to enter the Schedule K-1 information from the partnership. Or you could use any personal edition of the CD or download TurboTax software. The personal editions are available for Mac.

[CH1974]

So when filing using the Schedule K on my personal 1040 using self employed I only enter the profit on the Schedule K as the income? Yet, it asks me for all of my deductions and expenses again just like on turbo tax business to get the 1065 done. Is that right?