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June 1, 2024
Question

Please for Final 1065 from members withdrawal, 1 member with the LLC which owns a rental property, which form instead of 4797 because no sale or exchange took place?

  • June 1, 2024
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M-MTax
June 2, 2024

What happened? More information is needed. Was this a single member LLC or multi member?

I'm guessing it's a multi member LLC but how many members are there now and what was distributed? 

June 2, 2024

Hello, yes the LLC is now since Dec 2023 a single member LLC, (sent form 8832) and on my taxes I did Schedule E for the rental income and expenses, but one accountant told me I needed to do the final 1065 since a "partnership" doesn't exist any more. Other accountant told me since the operation continues no final 1065 was needed...It is confusing...

But the rental property continues under the LLC.

Since it is a final 1065 the software generated a 4797 as "property sold or exchange, or conversion", but this did not happened.

On Schedule K, for me the single member it shows a loss on #10 "net section 1231", but I don't want that to be generated since no sale took place, and I don't need the losses and then a big gain when its sold in the future!

Distributions on #19 are according to the balance sheet.

Thanks for your help!

M-MTax
June 2, 2024

See https://accountants.intuit.com/community/lacerte-tax-discussions/discussion/partnership-llc-becomes-single-member-llc-can-you-keep-the-same/00/7767

 

 

 

 

 

But the question remains as to what happened to the other member? A buyout of the interest by you?