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Discussion Forum Index --> Tax Questions --> Bankrupt Client
LWB (talk|edits) said:
| 2 March 2007
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| During 2006, taxpayer had two LLC's; one retail business and one nonresidential real estate rental business. All three (LLC's and individual) declared bankruptcy in July 2006. What income tax returns on what forms have to be complete for the year 2006?
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Jctmstx (talk|edits) said:
| 2 March 2007
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| You have to determine what kind of LLCs they are. Sole Prop. sched C. Sub S form 1120- S, individual form 1040.
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LWB (talk|edits) said:
| 2 March 2007
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| Both LLC's are "partnerships". So, do I need to file Form 1065's for the LLC's for the period of 2006 they were in business and a form 1040 for the individual? What if any, is the implication of bankruptcy on these returns?
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JR1 (talk|edits) said:
| March 2, 2007
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| Wait for some of the high end guys to report in. A bankruptcy estate opens up as I recall, did one, and that was 20 years ago...messy stuff, tho'.
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Riley2 (talk|edits) said:
| 2 March 2007
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| No Form 1041 is required for a partnership in Chapter 7 or 11.
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