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Discussion Forum Index --> Basic Tax Questions --> Husband/Wife multiple LLCs and proper tax reporting
Discussion Forum Index --> Tax Questions --> Husband/Wife multiple LLCs and proper tax reporting
SherrieL (talk|edits) said:
| 12 April 2009
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| If an LLC (LLC #1 for purposes of this discussion) was previously owned by a husband (50%) and wife (50%) in a non-community property state and was filing a Form 1065, and the same husband and wife formed an LLC (LLC #2 for purposes of this discussion) which now owns 100% of LLC #1, how should this be reported? Technically shouldn't file the 1065 with only one member, although it is really still owned by the same husband and wife as before.
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Bjeter (talk|edits) said:
| 12 April 2009
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| You have a technical termination the day LLC #2 became the 100% owner of LLC #1. LLC #2 needs to file a final return as of that date. LLC #2 is now a disregarded entity and LLC #1 is a partnership unless the husband and wife elect to be treated as something other than a partnership.
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SherrieL (talk|edits) said:
| 12 April 2009
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| I technically understand what you are saying (think LLC #s got switched--but follow your opinion). My quandry is where to now report LLC #1 (now the disregarded entity) since it is 100% owned by LLC #2 which is a partnership. LLC #1 is a fully functioning business with its own FEIN, so I'm not sure how to report it within LLC #2. If it is filed as a Schedule C on the individuals' return, then it is not reported within LLC #2 which is technically the 100% owner.
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Blrgcpa (talk|edits) said:
| 12 April 2009
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| If LLC 1 is now owned by LLC 2, it is a subsidiary or merged. what took place?
Sounds like LLC 1 is defunct.
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