Form 1065 which state to file in

[Greta]

Husband and wife reside in DC. They started an Airbnb physically located in NY. It produced a substantial loss in 2021. The K-1s will flow to their personal taxes in DC. How do I select a state to file the 1065 in? I would love to ignore doing it, since the loss won't bring either state any tax revenue.

[sjrcpa · Accepted solution]

1065 must be filed for NY.

Where was the LLC formed?

[jeffmcpa2010]

Probably actually have to file 1065 for both states. (I don't work in NY or DC, but most states I have seen have some kind of apportionment schedule).