1065 election for Sched C filing

[Jesse]

On the "other" board it was posted that a small partnership, under 10 partners or maybe 10 or fewer, can elect to all file Schedule C's rather than a 1065. There is an election you attach to the return. Also, in this situation there would have to be an EIN.

How do you make this election?

[Bees Knees]

There is no election for 10 or fewer partners to file Schedule C instead of Form 1065. I suggest you read the discussion that was started on this message board at

http://www.thetaxbook.com/forums/showthread.php?t=35

[JON]

10 or Fewer

The 10 or fewer can get you out of the late penalties for filing the 1065-as long as the partners picked up the appropriate amounts on their timely filed return.

There are regulations for specific events-"investment clubs"-there used to be an election filed I think with the first return - not file future 1065s but have members pick up the amounts individually...

Age is a problem that was 15 years ago I used that one....

[S T]

C vs 1065

On the other board, I believe the discussion was really about a h/w partnership, wherein they could file as a Schedule C disregarded entity rather than form 1065 if you are in a community property state. Rev Proc 2002-69.

Sandy

[jimmcg]

1065 Election

Reg 1.761-2 provides for certain investing and operating agreement partnerships that have no active conduct of a trade or business to have all partners consent to consent to be excluded from the partnership filing requirements of Subchapter K. Statement is filed with first return.

[Unregistered]

Reg 1.761-2 provides for certain investing and operating agreement partnerships that have no active conduct of a trade or business to have all partners consent to consent to be excluded from the partnership filing requirements of Subchapter K. Statement is filed with first return.

The original question was about folks who were filing Schedule C's. Trade or business. I don't believe electing out of partnership treatment would apply in this case.

[JON]

Ok

Thank you jim-welcome to the board. You answered MY question.