Can we still file 1040 for the LLC co-owned with a friend

Forum|Forum|2 years ago
February 27, 2024
3 replies
0 views

My friend and I co-own some investment properties. Last year we set up a LLC company and putted the investment properties under the LLC. Before we set up the LLC we file the 1040 separately. We calculate our own part of rent and expenses. Can we still file separate 1040 like before?

Vanessa A

No, if you set up an LLC with a friend, then you will need to file a 1065 partnership return to report whatever income and expenses the partnership received. Then the partnership will issue the partners a k-1 which you will then report on your personal 1040 returns. You can use TurboTax BUSINESS, to file the 1065 Partnership return and then you would use TurboTax premier to enter the K-1 you receive from the partnership.

What is a Schedule K-1

What is form 1065

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

Anonymous_

Employee

@toknowwhy41 wrote:

.......Can we still file separate 1040 like before?

No, seek guidance from a local tax professional.

See https://taxexperts.naea.org/expertdirectory

Carl11_2

Employee

When you have an LLC with more than one owner/partner, you basically have a multi-member LLC or Partnership. Therefore you must file an IRS Form 1065-Multi-member LLC/Partnership return. For that, you would have to purchase a separate program called TurboTax Business. The TurboTax Business program is not available as an on line product or for MACs. It's for the Windows operating system only. Once the 1065 return is completed, you'll print a K-1 for each owner/partner and provide it to them. They will need it in order to complete their own individual 1040 personal tax return.
Take note that the 1065 return has a filing deadline of March 15. One day late and there's a $205 late filing penalty for each partner/owner for each month it's late. So in your case, that would be $410 if not filed before Apr 15.
Overall, I would highly recommend you seek professional help for "at least" your first year dealing with this. Especially if your state taxes personal income. Doing it wrong "will" (not can) be costly, and it's a possible double-whammy if your state taxes personal income.