My client is a sole owner of an LLC, which gets a K-1 for rental income from another LLC that is in realty rental business. How should he report this K-1 income?

[Need-2-Know-More]

The client is the sole owner of the LLC and files it as a disregarded entity. If LLC owns the rental property, then Sch E should be used to report the income and expenses, but in this case the LLC gets a K-1 with rental income on line 2, then how this amount should be entered in the ProSeries tax software? Should I just enter the k-1 line 2 amount on Sch E as rental income?

[abctax55 · Accepted solution]

Sch E, page 2

[Just-Lisa-Now-]

Just enter the K-1 into the K-1 worksheet and it will go where its suppose to go.

[IRonMaN]

If he gets a K2, I would tell him to find some snow and go skiing!  If he gets a K-1, then I think you want to listen to the ladies.

[abctax55]

Or a KT-22.   Squaw Valley, USA.  Site of the 1960 Olympics!

[IRonMaN]

I remember those Olympics well.  Since I was about three years old then, it obviously was the first Olympics that I saw.  Seeing something for the first time always leaves a lasting impression.

[abctax55]

I was 5...so yikes, I'm older than you.
The Olympic Rings memorializing Squaw as the site of the Olympics is less than five miles from my office.

[IRonMaN]

Cool
I even opened up Firefox just so I could comment directly to that --------------- consider yourself special

[abctax55]

I do... I feel very lucky to live in such a beautiful place.

[TAXOH]

I was -2 in 1960.

[Just-Lisa-Now-]

I wasn't even thought about in 1960  LOL