MDFTAX
Level 3
06-21-2025
08:35 AM
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Hello Community!
Thanks for all your help during tax season.
Could you please help me with below?
Completing a 1065 Partnership for a Multi Member LLC ( Husband and wife are the only members)
1- Does it matter if we select box Domestic General partnership or Domestic LLC
2- Having trouble with balancing their Balance Sheet. It seems they started the rental property business account with some existing cash. And then they contributed $25K.
I am off balance by $20K-- what is a better line item to place the $20K difference so that there are no red flags?
---Contributed Capital or
--- Loans to partners
Thanks in advance!
IRonMaN
Level 15
06-21-2025
10:44 AM
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1 You said they were a LLC so why wouldn't you check that box?
2 You don't have any red flags if you track down where the 20K went to and record it accordingly.
Slava Ukraini!
qbteachmt
Level 15
06-23-2025
12:52 PM
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"they started the rental property business account with some existing cash"
How is that different than the next $25k they contributed? Let's think it through:
Either this the proceeds of a loan (liability), or it is from them (equity). Did you ask them?
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Don't yell at us; we're volunteers
