2 Partner LLC and paying Taxes

[Andrew P.]

Hi All,

We own 23 units which are starting to turn a profit. There are two of us that own the properties in a LLC (also the %ownership is not 50:50). How does everyone go about paying taxes? Do you take the total out of the company and pay that to the partners for which they need to pay the IRS? Or have each individual be responsible for their part? Also considering the tax amount may not be equal and the individuals are in different tax brackets.

Thanks!

[Natalie Kolodij]

Originally posted by @Andrew P.:

@Ashish Acharya

Thanks! Yes that was all already done.

However we are paying the taxes out of our personal income, not from the LLC. Just trying to figure out a fair way to do it.

The fair way is that it was all reported on the 1065 which split it 50/50 onto the K1s for each of you. 

All of the "splitting" and "who pays what" and "fairness" happens on that 1065 partnership form. 

Now you each just report your portion on your 1040 and pay your share of tax on the income. 

If that isn't something that's making sense with the filing then I would reach out to a tax professional to work with.