Tying In Schedule C And E Together?

Comments(10)

• 
  InActive_Account28th December, 2004

  Okay, well couple of question first. How many members does the LLC have? What forms of income does the LLC have? (Only rental income?)

• 
  davidwburns28th December, 2004

  It's a two member LLC (my wife and I) and it only has rental income.
  
  Thanks!

• 
  InActive_Account28th December, 2004

  Thanks for the clarification. If an LLC is a single member LLC, it is a disregarded entity for tax purposes. I've heard different arguments regarding if a husband and wife is considered one member or two. I'm of the opinion that it depends on which state you are filing in. (It depends on if that state is a community property or non-community property state.)
  
  Lets assume your LLC is considered to have two members. The LLC would file a partnership tax return (Form 1065). The K-1's that are filed with that would be used to transfer the taxation to your personal return (Form 1040). The information on the K-1's would be inputted on page two of your Schedule E, and then on the face of tne 1040 (line 17).
  
  Since you only have passive rental income, Schedule C does not apply.
  
  If you find that the two of you are considered one member, thus the LLC is a disregarded entity, then file using page one of Schedule E.
  
  That's a very brief explanation, ask more questions if needed, and others feel free to chime in with additional clarification. Didn't want to type a book.

• 
  davidwburns28th December, 2004

  Thanks for the help. What about a tax ID number that I have for the LLC?. Would I put that on Schedule E if my rental properties are in the LLC's name?
  
  Thanks

• 
  InActive_Account28th December, 2004

  If you treat the LLC as a disregarded entity, put your social security number on the schedule E. If you file a tax return (1065) for the LLC, then there is a place for the Name and Tax ID of the LLC on page two of schedule E.

• 
  davidwburns28th December, 2004

  So, basically, I don't need a schedule C and I can put the tax ID and name of the LLC on 1065 when separating my gains or losses, correct? And again, I need to complete a 1065 because its a partnership, right? Any idea where I can go to find out if NC is a state that allows the LLC to pass through to its owners?
  
  Thanks again!

• 
  davidwburns28th December, 2004

  So, basically, I don't need a schedule C and I can put the tax ID and name of the LLC on 1065 when separating my gains or losses, correct? And again, I need to complete a 1065 because its a partnership, right? Any idea where I can go to find out if NC is a state that allows the LLC to pass through to its owners?
  
  Thanks again!

• 
  InActive_Account28th December, 2004

  Quote:
  On 2004-12-28 15:06, davidwburns wrote:
  So, basically, I don't need a schedule C and I can put the tax ID and name of the LLC on 1065 when separating my gains or losses, correct? And again, I need to complete a 1065 because its a partnership, right? Any idea where I can go to find out if NC is a state that allows the LLC to pass through to its owners?
  
  
  You do not need a schedule C. The 1065 is for the LLC, so yes, the name and tax id of the LLC will go on the 1065. The LLC will pass through to its owners.
  
  I would recommend you hire a tax professional to prepare the tax return, to make sure it is filed properly.

• 
  davidwburns28th December, 2004

  I think that's a good idea.

• 
  NewKidinTown229th December, 2004

  North Carolina is NOT a community property state. Your LLC is a partnership unless you elected to be treated as a corporation.