Residential rental transitioned to LLC from a sole proprietorship

Forum|Forum|1 year ago
April 2, 2025
1 reply
0 views

I have 3 rental properties as a sole proprietorship but in May 24, 2024 I converted it to an LLC (husband & wife members). How will I do my 1065 & 1040 tax returns

MinhT1

It depends.

If you live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin), your husband-wife LLC is a disregarded entity for tax purposes and you can file a Schedule E for your LLC on your personal joint tax return.

If you live in another state, then you have to prepare a LLC return (form 1065).

You can use TurboTax online for small businesses to prepare form 1065 by clicking here

Or you can use TurboTax Business CD/Download on a Windows computer (not compatible with Mac).

You can purchase TurboTax Business CD/Download from this page.

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