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SMLLC owned by Multi-Member LLC

  • 1.  SMLLC owned by Multi-Member LLC

    Posted 25 days ago
    Hi Everyone,

    Hope all is well!

    I have a SMLLC who is owned by a Multi-Member LLC filing form 1065.

    Both own rental real estate and both maintain completely separate set of books.

    My instinct is to report the SMLLC P&L activity on form 8825 of the 1065 as property B for example but what do i do with the balance sheet presentation and depreciation for SMLLC?.  If I don't consolidate the two balance sheets the activity will probably not make sense.  But consolidating the two balance sheets doesn't seem right to me either. Or do i disregard the 1065 altogether and report the activity on Schedule E of each partner?  This doesn't feel right either.

    Any advice is welcomed.

    Thank you,

    Paul

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    Paul D. Tusa CPA
    TUSA & ASSOCIATES, CPA, PC
    N Bellmore NY
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  • 2.  RE: SMLLC owned by Multi-Member LLC

    Bronze Most Valuable Member
    Posted 24 days ago
    You combine the balance sheets. The smllc is treated as a division od the partnership.

    The 8825 presentation is correct and you just need to include the depreciation for the proprry.

    Vincent J. Preto, CPA
    Senior Partner
    Wagner and Zwerman LLP
    201 Old Country Road, Suite 202
    Melville, NY 11747
    631-777-1000 ext. 340

    Sent from my iPhone