Tax Treatment: Individual or business entity

[Zhenyang Jin]

I purchased one fourplex in CA last year with one partner. Meanwhile, I created one LLC and business bank account to pay property tax, mortgage and day-to-day operating cost.

Per lender's requirement, the title is held by individuals as "tenants in common" rather than LLC. Property tax and Form 1098 is sent to individual and paid using my LLC account. 

My question is: Can I use form 1065 to cover all the costs like property tax, mortgage 1098 whose receipt are for individuals?

Would you please share your insights?

Regards, Zhenyang

[Bill Hampton]

@Zhenyang Jin

If your LLC includes you and your business partner, yes you should file a 1065 partnership tax return. The due date for 1065 returns is March 17th this year.

Yes, you can deduct all property related expenses on the 1065 return. 

I recommend that you work with an accountant that has experience with real estate taxation and partnership tax returns. 

Good luck.