TurboTax: 3-person LLC invested in larger Apt Complex. How to TT?

[Adam L.]

So got a question...this is my first time doing this...I'm trying to fill this out in Turbo Tax and understand what to do.

I and 2 friends pooled $100k into a small LLC to invest in a large apartment complex purchase ($7M+ deal). We just received the K1 from the large company and am trying to break it down and figure out what to do w/ it. It looks like a large depreciation/operating loss upfront that the Large LLC said would be taken in first year to offset future taxes.

Any thoughts? I'm in Texas...TurboTax is walking me through filing TX Franchise Tax paperwork and its starting to get a bit confusing.

Thoughts? see attached.

[Eamonn McElroy]

@Adam L.

"Thoughts?"

(1) Your MMLLC is considered a partnership for federal income tax purposes unless you've made a corporate tax election.  The 2018 tax year partnership filing deadline was 3/15/2019.  I hope you filed an extension as the IRS charges a per month per partner penalty for 1065 late filing.

(2) I hope TurboTax is smart enough to tell you that you have a GA filing obligation and must file Form 700 as the partnership has GA source income. You need to report and pass along the GA modifications to the LLC's members.

(3) I don't know if any CPA/EA here is going to help you self-prepare in TurboTax for free...  One, this forum is more for high level and general questions rather than specific advice.  Two, we're extremely busy this time of year...  An analogy would be asking a mechanic to teach you how to fix your car when he/she is already working 12-16 hours a day...

It may be advisable to put all the individual members' 1040s on extension (and pay all estimated tax by applicable due dates) and reach out to some CPAs/EAs post April 15th. It's possible that a CPA/EA may be able to get the penalty abated as well if you did not file an extension for the LLC.