Hello,My wife and I are filling jointly with TT Home & Business in NJ. We created 2 partnership LLCs in NJ. We obtained 2 rental properties in NJ last year.Unit 1: ownership starting Jan 2021; deed transferred to our partnership LLC #1 in June 2021.Should the Unit 1 rental income be split between personal/Schedule E (Jan-June) and 1065/K-1 (July-Dec)?Unit 2: ownership starting June 2021; deed not yet transferred to our partnership LLC #2.So, no need to file 1065/K-1 for Unit 2 yet, correct? (just report via perosnal/Schedule E?)Thanks in advance for your advice and help.

Question

NJ: Married Filing Jointly With New Rental Properties (split between Sch E and 1065/K-1?)

Forum|Forum|4 years ago
February 15, 2022
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Hello,

My wife and I are filling jointly with TT Home & Business in NJ. We created 2 partnership LLCs in NJ. We obtained 2 rental properties in NJ last year.

Unit 1: ownership starting Jan 2021; deed transferred to our partnership LLC #1 in June 2021.
- Should the Unit 1 rental income be split between personal/Schedule E (Jan-June) and 1065/K-1 (July-Dec)?
Unit 2: ownership starting June 2021; deed not yet transferred to our partnership LLC #2.
- So, no need to file 1065/K-1 for Unit 2 yet, correct? (just report via perosnal/Schedule E?)

Thanks in advance for your advice and help.

TurboTax Home & Biz Windows

R

RobertB4444

You are exactly correct on how to enter all of this.

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T

TMOBVAuthor

Thank you for confirming!

From a quick search, it seems we can file the federal 1065 manually and mail in by 3/15, and file the NJ 1065 in the same way (or on their website I think). Are there any drawbacks to this?

(We have to review the forms in detail, and then may circle back for additional guidance if we run into trouble interpreting any fields.)

DaveF1006

No. I don't see any drawbacks to this other than the processing times for the returns may be slow. Do reach out to us anytime if you have additional questions or concerns.

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