1065 - Partnership Return

[MDFTAX]

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]

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. 

[qbteachmt]

"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?