Skip to main content
June 17, 2023
Question

PARTNERSHIP LLC - HOW TO SWITCH FROM 1065 FILEING TO JUST SCHE E ON THE 1040

  • June 17, 2023
  • 3 replies
  • 0 views

WHAT STEPS ARE REQIRED TO SWITH FROM FILING A 1065 FORM BACK TO USING A SCH E RENTAL REAL ESTATE FORM ON THE 1040 FORM.  SIMPLE LLC WITH A 2 MEMBER (SPOUSE) FORMAT.

 

THANKY YOU.

 

3 replies

Employee
June 17, 2023

The IRS has this answer for you  https://www.irs.gov/newsroom/closing-a-partnership

June 17, 2023

in order to convert from a multimember LLC to a single member LLC treated as a disregarded entity, your spouse will have to gift you their interest in the LLC. No gift tax return is required for spousal gifts of present interest. you take over their tax basis ang follow @ee-ea thread on filing a final partnership return.

*****

you will have to manually enter the rental activity into your 1040. there is no way to do a transfer.

*******

if your spouse remains a member you will have to continue filing partnership returns.

 

An LLC owned by a husband and wife, that has not made an election to be taxed as a corporation, is treated as a partnership and must file a partnership return unless the husband and wife are in a community property jurisdiction. then separate schedule Es for rental activity are filed.

Employee
June 18, 2023
Employee
June 26, 2023

I think there is some confusion below.

 

If you dissolve the LLC, then you can file your real estate activities on form 1040, using schedule E.  

 

If you want to maintain the LLC structure, we need to know more about where you live and whether your actives are active or passive.