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.?

Comments(4)

  • tassod6th March, 2006

    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..

  • fbprop10th March, 2006

    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.

  • finniganps10th March, 2006

    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.

  • NewKidInTown311th March, 2006

    Use TurboTax business to prepare your partnership tax return and the K-1s.

Add Comment

Login To Comment