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  • 1.  SMLLC owned by Multi-Member LLC

    Posted 08-28-2019 05:35 PM
    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

    Posted 08-30-2019 03:33 PM
    You combine the balance sheets.  Unless it has filed Form 8832, the SMLLC is disregarded entirely, and all balance sheet and tax items of the SMLLC are treated as <g class="gr_ gr_348 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-ins doubleReplace replaceWithoutSep" id="348" data-gr-id="348">balance</g> sheet and tax items of the tax partnership for purposes of the federal income tax.  When filling out the balance sheet on Schedule L of Form 1065, include items of both the tax partnership and its SMLLC subsidiary.

    ------------------------------
    Matthew E. Rappaport, Esq., LL.M.
    Vice Managing Partner
    Chair, Taxation Group
    Falcon, Rappaport & Berkman PLLC
    (516) 558-3377
    mer@frblaw.com
    ------------------------------

    Original Message


  • 3.  RE: SMLLC owned by Multi-Member LLC

    Bronze Most Valuable Member
    Posted 08-30-2019 03:48 PM
    Paul
    You must combine the two balance sheets into one for federal income tax return

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    Scott Sanders CPA
    GETTRY MARCUS CPA, PC
    Woodbury NY
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    Original Message


  • 4.  RE: SMLLC owned by Multi-Member LLC

    Posted 08-31-2019 09:08 AM

    Thank you and have a Great Weekend!

     

    Click here to send us secure files

     

    Paul D. Tusa, CPA, MBA                                              
    Business Consultant, Financial and Tax Advisor

    TUSA & ASSOCIATES CPA, P.C.                                
    Certified Public Accountants
    1818 Bellmore Avenue
    Bellmore, New York 11710
    www.tusa-associates.com

    Skype: Paul.Tusa
    Phone: 516-785-4999
    Fax: 516-785-7882

    If you are happy with our services, a referral is the best way of showing it.

    The advice contained herein is based upon us relying on the facts, circumstances, completeness and accuracy of the information provided by you.  We are not responsible for updating you on the advice contained herein.

     

    Please be informed that any U.S. Federal and State tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. 

    The information contained in this message may be privileged and confidential and protected from disclosure. If the reader of this message is not the intended recipient, or an employee or agent responsible for delivering this message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately by replying to the message and deleting it from your computer.  Thank you.

     




    Original Message


  • 5.  RE: SMLLC owned by Multi-Member LLC

    Posted 08-31-2019 07:52 AM

    Thank you!  Have a Great Weekend!

     

    Click here to send us secure files

     

    Paul D. Tusa, CPA, MBA                                              
    Business Consultant, Financial and Tax Advisor

    TUSA & ASSOCIATES CPA, P.C.                                
    Certified Public Accountants
    1818 Bellmore Avenue
    Bellmore, New York 11710
    www.tusa-associates.com

    Skype: Paul.Tusa
    Phone: 516-785-4999
    Fax: 516-785-7882

    If you are happy with our services, a referral is the best way of showing it.

    The advice contained herein is based upon us relying on the facts, circumstances, completeness and accuracy of the information provided by you.  We are not responsible for updating you on the advice contained herein.

     

    Please be informed that any U.S. Federal and State tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. 

    The information contained in this message may be privileged and confidential and protected from disclosure. If the reader of this message is not the intended recipient, or an employee or agent responsible for delivering this message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately by replying to the message and deleting it from your computer.  Thank you.

     




    Original Message


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