Tax returns for LLC holding real estate

[Jon Jacobs]

I own a property through an LLC with 5 partners. I know I need to prepare form 1065 and K-1s, but I can't figure out how rental income/expenses fit into Form 1065? Is rental revenue my sales, where do operating expenses go, etc? Do I need to fill out form 8825 and if so, where does that flow to 1065?

Thanks!

[Dave Toelkes]

Fill out Form 8825 first.  Form 8825 is to your Form 1065 as Schedule E is to your 1040. All your rental income and expenses go on Form 8825.  If this is your partnership's first Form 1065, then all your properties are also listed on Form 4562.  In subsequent years, only new assets or depreciable improvements to existing assets are reported on a new Form 4562

After you finish Form 8825, follow the directions on line 21 to transfer your net rental income (loss) to Form 1065.   Form 8825 and form 4562 are attached to Form 1065 for submission to the IRS.

If you want to do it yourself, TurboTax Business (not the Home and Business version) supports Form 1065 and its associated forms and schedules.