4 Member LLC with investment property

[Jesse]

Land was purchased as an investment by an LLC consisting of 4 members. The only expense they have is property taxes and interest expense.

Because they formed an LLC do they need to file a Form 1065?

Or can they still operate as a joint venture and not file an LLC?

Either way would these expenses be suspended until the actual sale of the property?

[David1980]

A joint venture with 4 people would default to a partnership. Qualified joint ventures between husband/wife is an exception, but obviously you'd never see more than 2 people in one of those. So unless they elected to be taxed as a corporation it would default to 1065 partnership return.

[Gretel]

Land was purchased as an investment by an LLC consisting of 4 members. The only expense they have is property taxes and interest expense.

Because they formed an LLC do they need to file a Form 1065?

Yes, forming a multi-member LLC will require Form 1065.

[Jesse]

Thanks, I was hoping for one of those exceptions to the rule.

Part II:
I first asked - Would these expenses be suspended until the actual sale of the property?

but as I rethink, would these expenses then flow through to each member and be deducted on schedule A - investment expenses up to the amount of outside basis of each individual with the remaining (if any) suspended?