rose323
Level 5
02-26-2022
12:40 AM
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I have a client who usually files with a W2 and one dependent. Now she has an LLC for her daughter for a small T-shirt business, that has more losses than gains. How would this work on a regular 1040? The taxpayer wanted to elect the sole proprietor option. A bit confused since it is the daughter's LLC. How would I set this up showing it is daughter's LLC. First time working with an LLC.
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abctax55
Level 15
02-26-2022
01:28 AM
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The daughter's income or loss from the disregarded LLC goes on the daughter's tax return. NOT on her mother's return.
Just like any other income of a 'dependent' .
HumanKind... Be Both
rose323
Level 5
02-26-2022
01:32 AM
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Ok two separate returns. Got it. Her age is 17.
