Multistate K1

Forum|Forum|3 years ago
March 12, 2023
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First year doing the K1 for Federal - two different returns for two different LLC - Turbo Tax allowed me to file these without any issues - on to State which I want to confirm:

1st LLC setup in North Carolina - one member NC other member IN

Completed the NC K1, it was a loss as it's first year STR.

Do I need to do an IN K1 for the other member as non resident loss for pass through or do they just claim it on their IN state as nonresident loss from K1?

Second LLC same except 1 member in VA 100% of P&L to that member - incorporated in VA, but the property earned income in NC - registered as foreign entity in State of NC - K1 done for NC state - do I need to do the K1 for VA as no other income other than the NC property STR claimed and submitted on NC K1. Member should report income as K1 from another state?

RobertB4444

For the first LLC you'll issue a NC K-1 to all the partners regardless of whether they reside in NC. It will be up to any of those partners whether they need to file a NC return in order to claim their loss or - in future years - are required to file a NC return because of their gain. You IN partner will pay taxes or claim losses from his federal K-1 on his IN return.

For the second LLC you will need to file a return for the LLC in NC and then in Virginia as well. File the NC return first and issue all partners NC K-1's. Then file the Virginia return and issue Virginia K-1's to all partners from that. Based on the amounts on those K-1s each partner will have to decide if they have any filing requirements for those states.

@msd7011

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