Question

Started a New LLC Business and how do we file the loss?

Forum|Forum|6 years ago
May 5, 2020
1 reply
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Husband and wife started a new LLC Business in 2019 and have a loss. We want to report the loss over the next few years. We have already completed our personal tax return and expect to file an amended return after filing the business taxes which will trigger a K-1. How do we set off the loss? Thank you.

TurboTax Business Windows

Critter

Employee

Since you filed the personal return BEFORE the partnership return I highly recommend you seek local professional assistance to get educated in this matter. And now you must amend the personal return when the original return has finished processing and your original refund is in hand. Amended returns usually take 4 months to process ... longer this year due to the virus.

The Partnership return was also due on 3/15 so unless you put the return on extension the late filing penalties are accruing monthly ... The IRS assesses $210 for partnerships, per person, per month, for a maximum of 12 months.

E

EZ606Author

Thank you for the reply, but our tax filing date is July 15, 2020.

Carl11_2

Employee

Thank you for the reply, but our tax filing date is July 15, 2020

That does not change the fact that you can't do anything until you have a K-1 physically in your hand. That can't happen until after the 1065 partnership return is completed and filed. Then once you have the K_1, amend your 2019 return to add it and just follow the prompts. Gain or loss, just follow the prompts.

Understand that an amended return normally takes 6-8 weeks to process. But with this virus stuff you can expect 4 months or longer since amended returns have to be processed by hand. Amended returns can not be e-filed. The IRS says so. You have to print, sign and mail it to the IRS. If your amended return will result in money being refunded to you, then the IRS will mail a paper check to the address on your amended return. There is no other option for receiving a refund on an amended return.