SBZ
Level 1
03-22-2023
11:25 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I am thinking that the problem is that they chose to have the LLC taxed as a partnership and that one partnership return has been filed. Without that, It would have been a single member LLC so a disregrded entity and not an issue. They converted their primary residence to a rental 12/01/20 and held it personally until the end of October, 2021 when they transferred it to the LLC. Maybe it would be worth trying to change it's classification from a partnership using form 8832 and hoping it would be accepted for late election relief under the circumstances. What do you think about that idea?