LLC Partnership that have rental properties

[nana56]

This was a 2 person LLC and have been filing 1065.  The business is rental real estate.  Was told that as of 12/31/2019 one partner left the LLC and now it is a sole proprietor LLC.  Do I have to file a 1065 or can I just put it on the sole proprietor schedule E

[IntuitMark304 · Accepted solution]

See the following documentation from the IRS:

https://www.irs.gov/instructions/i1065

According to the instructions for the Form 1065, A partnership is the relationship between two or more persons who join to carry on a trade or business, with each person contributing money, property, labor, or skill and each expecting to share in the profits and losses of the business whether or not a formal partnership agreement is made.

https://www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-compan...

From the IRS website, if a single-member LLC does not elect to be treated as a corporation, the LLC is a "disregarded entity," and the LLC's activities should be reflected on its owner's federal tax return. If the owner is an individual, the activities of the LLC will generally be reflected on:

• Form 1040 or 1040-SR Schedule C, Profit or Loss from Business (Sole Proprietorship)  
• Form 1040 or 1040-SR Schedule E, Supplemental Income or Loss 
• Form 1040 or 1040-SR Schedule F, Profit or Loss from Farming