4 Member LLC with investment property

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  • Jesse
    Senior Member
    • Aug 2005
    • 2064

    #1

    4 Member LLC with investment property

    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?
    http://www.viagrabelgiquefr.com/
  • David1980
    Senior Member
    • Feb 2008
    • 1703

    #2
    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.

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    • Gretel
      Senior Member
      • Jun 2005
      • 4008

      #3
      Originally posted by 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?
      Yes, forming a multi-member LLC will require Form 1065.

      Comment

      • Jesse
        Senior Member
        • Aug 2005
        • 2064

        #4
        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?
        http://www.viagrabelgiquefr.com/

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