taxprepper
Level 3
09-21-2021
09:39 AM
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Background info:
- Client is the sole member of a single-member LLC.
- Single-member LLC is a partner in another LLC.
- The multi-member LLC issues 1 K-1 to client's single-member LLC.
- K-1 includes rental and ordinary business income.
- Single-member LLC has an EIN.
My questions:
- Should the K-1 rental income be entered into the Sch E screen and the business income into the Sch C screen?
- Or should all K-1 income info be entered into the partnership k-1 screen?
Thank you!
sjrcpa
Level 15
09-21-2021
10:22 AM
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Enter the K-1 the same way you would if it was issued to the individual.
The more I know the more I don’t know.
TaxGuyBill
Level 15
09-21-2021
03:15 PM
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@taxprepper wrote:
- The multi-member LLC issues 1 K-1 to client's single-member LLC.
The multi-member LLC should have issued the K-1 in the name and SSN of the individual person, NOT the name and EIN of the LLC.
The taxpayer should make sure that is corrected, at least for next year.
