Need Help
Wondering if someone can steer me in the right direction. I am doing my taxes using TurboTax and up until last year its been pretty straight forward for me. In 2005 though, i bought and flipped a property under an LLC I created also in 2005. My LLC is a partnership between me and my brother-in-law who lives in Canada. The property ending up being a loss. Turbo Tax is asking me about a Schedule K-1 which i have not received. The only thing i got from the closing of that property is a 1099-S. This property was the only transaction done with this LLC, i have not used my LLC for anthing else. Should i be getting a Schedule K-1? Also, do i need Turbo Tax business or can i just report this sale as a loss in Turbo Tax Deluxe under Income and then other income.?
I agree with your comments, and i will seek out a CPA if i dont get a clear answer, but i just seems to me that i should be able to get by this year at least with just ONE transaction that I did, and did not involve anything complicated...just bought and sold. Maybe someone has some insight..
If your LLC is a partnership then (unless the LLC elected to be taxed as a corporation) the LLC prepares form 1065. A part of the 1065 is a K-1 which is given to each partner for inclusion on their personal 1040 return.
So who is preparing the partnership tax return??? That is who you need to get the K-1 from.
Quote:
On 2006-03-10 03:49, fbprop wrote:
If your LLC is a partnership then (unless the LLC elected to be taxed as a corporation) the LLC prepares form 1065. A part of the 1065 is a K-1 which is given to each partner for inclusion on their personal 1040 return.
So who is preparing the partnership tax return??? That is who you need to get the K-1 from.
This is correct. You formed an LLC with two partners. You need to have a partnership return completed for the LLC. If the LLC is treated as a partnership you will get a K-1 and so will the other partner in accordance with the operating agreement which dictated the split of profits and losses between the partners.
Once you get the K-1, you can prepare your personal return. At this date, you may want to consider applying for an extension for both the partnership AND your individual returns.
Use TurboTax business to prepare your partnership tax return and the K-1s.